The proposed bill establishes the "Next New Jersey Manufacturing Program" under the New Jersey Economic Development Authority (EDA) to encourage in-state manufacturing investments and job creation. The program offers tax credits to eligible businesses that invest a minimum of $10 million and create at least 20 new full-time jobs, with a focus on manufacturers, particularly in clean energy sectors. To qualify, businesses must ensure that the new jobs pay at least 120% of the median salary for manufacturing employees in their county and comply with affirmative action and prevailing wage requirements. The bill also introduces a tax credit transfer certificate, allowing businesses to sell or assign their credits, and reserves $100 million of the total $500 million in tax credits for clean energy manufacturers during the initial two years.

Additionally, the bill amends existing tax credit provisions to establish new eligibility criteria, including a requirement for businesses to maintain at least 80% of the new employees specified in their project agreements to retain their tax credits. If they fall below this threshold, they will forfeit their credits until compliance is demonstrated. The overall cap for tax credits is set at $11.5 billion over nine years, with specific allocations for various programs, including $2.5 billion for transformative projects under the Aspire Program. The EDA is granted the authority to approve tax credits beyond annual limits under certain conditions, ensuring flexibility in response to economic needs while mandating transparency in the publication of tax credit transfers.

Statutes affected:
Introduced: 34:1B-362