The Next New Jersey Manufacturing Program Act, designated as P.L.2025, c.123, aims to bolster New Jersey's manufacturing sector through a comprehensive tax credit program. This initiative recognizes the importance of manufacturers in driving economic growth and job creation, particularly in advanced manufacturing, life sciences, and clean energy technologies. The program offers competitive incentives to attract significant investments and promote the establishment or expansion of manufacturing facilities. To qualify for tax credits, businesses must meet specific criteria, including a minimum capital investment of $10 million and the creation of at least 20 new full-time jobs with salaries at least 120% of the county's median for manufacturing employees. The New Jersey Economic Development Authority will oversee the program, ensuring compliance with environmental standards and affirmative action requirements.

The bill also introduces amendments to existing tax credit laws, focusing on eligibility and application processes. It specifies that businesses must maintain a certain number of new employees and their corresponding salaries to retain tax credits, with conditions for forfeiture if these thresholds are not met. Additionally, it allows for the transfer of tax credits under certain conditions, with a minimum sale price of 85% of their value. The legislation establishes an overall cap of $11.5 billion on the combined value of all tax credits awarded over nine years, with specific allocations for transformative projects and other initiatives. Starting in fiscal year 2026, up to $500 million in tax credits will be allocated for projects under this act, including $100 million reserved for clean energy manufacturers. The act is set to take effect immediately upon approval.

Statutes affected:
Introduced: 34:1B-362
Advance Law: 34:1B-362
Pamphlet Law: 34:1B-362