New Jersey Expands Business Incentives with $500M Next NJ Manufacturing Program

On Sep 15, 2025

By Eric Brophy and Patrick O’Reilly

When New Jersey celebrates “Made in New Jersey” Manufacturing Day on October 3, 2025, industry leaders will have no shortage of topics to discuss. Chief among them is Governor Phil Murphy’s recent signing of the Next NJ Manufacturing Program (A5687/S4407) into law on August 13. The initiative, housed within the New Jersey Economic Development Authority (NJEDA), is designed to sharpen the state’s competitive edge by driving new investment, capital expansion, and job creation across the manufacturing sector.

The program allocates $500 million in targeted tax credits exclusively for qualifying manufacturing businesses, with a dedicated $100 million carve-out for clean energy manufacturing. By reserving a significant portion of funds for firms building renewable and sustainable products, Trenton is signaling that advanced and green manufacturing are central to the state’s long-term growth strategy.

In addition, the program allows for certain qualified businesses, such as Minority and Women Business Enterprises, located in Opportunity Zones or those businesses with collective bargaining agreements or labor harmony agreements to receive bonus credit awards. This program is just the latest of many incentives programs the NJEDA has rolled out to spur economic development and job creation as part of Governor Murphy’s dedication to creating an innovation economy.

A Broad Incentive Strategy

The manufacturing initiative builds on a framework of business support programs that have been introduced or expanded during Governor Murphy’s term. The Emerge Program provides tax credits tied directly to job creation and capital investment, rewarding companies that commit to staying and growing in New Jersey. The Aspire Program supports real estate and redevelopment projects, helping attract commercial tenants while breathing new life into New Jersey’s urban centers.

Fueling Innovation and Startups

Governor Murphy has consistently tied economic development to innovation. For example, the New Jersey Innovation Evergreen Fund (NJIEF) is a flagship program that combines public and private capital to fund promising startups. By auctioning state tax credits to established companies and reinvesting those proceeds in young firms, NJEDA is fostering both capital flow and corporate mentorship for emerging entrepreneurs.

Complementing this is the long-standing Net Operating Loss (NOL) Program, which allows early-stage tech and life sciences companies to sell operating losses for immediate cash. Expanded in recent years, it now makes New Jersey one of the most attractive states for research-driven startups.

Targeting Strategic Industries

The state has also invested heavily in clean energy, film, and advanced manufacturing. The Film and Digital Media Tax Credit Program has lured major productions to the state, creating jobs and boosting local economies.  In 2023, the state saw nearly $600 million in qualified film spend.  And, in 2025, “Happy Gilmore 2” spent over $152 million on just one film.

Balancing Costs with Opportunity

New Jersey is an expensive state to start and build a business. But officials are betting that targeted, imaginative, tax credits and incentives will offset those costs and attract new companies while at the same time keeping others rooted in the Garden State. The Next NJ Manufacturing Program underscores that strategy: making long-term investment in New Jersey more attractive, while reinforcing the state’s position as a center for innovation, clean energy, and advanced manufacturing.

Eric Brophy chairs Chiesa Shahinian & Giantomasi PC (CSG Law)’s Government & Regulatory Law Group. Eric previously served as Deputy Chief of Staff for Economic Growth to Governor Phil Murphy where led the Governor’s economic portfolio advancing major economic initiatives across the state. He can be reached at [email protected] or 973-530-2035.

Patrick O’Reilly chairs Chiesa Shahinian & Giantomasi PC (CSG Law)’s Government & Regulatory Law Group. Patrick’s experience in public finance includes acting as bond counsel, underwriter’s counsel and trustee’s counsel in transactions involving local and state government entities, including the New Jersey Housing and Mortgage Finance Agency, the New Jersey Educational Facilities Authority and the New Jersey Economic Development Authority. He can be reached at [email protected] or 973-530-2093.

Disclaimer: Sponsored content articles do not reflect the opinions of New Jersey Business Magazine or the New Jersey Business & Industry Association.

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