New Tax Credits to Rev Up NJ Manufacturing

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By Michele N. Siekerka, NJBIA President and CEO On Sep 29, 2025

A new state law, which NJBIA helped push to the legislative finish line, is making the largest investment in manufacturing in this state’s history.

Manufacturers are the engine that drives New Jersey’s economy – a $58 billion industry that produces everything from pharmaceuticals and chemicals to food products and the advanced technologies that support supply chains and catalyze innovation.

“Made in NJ Manufacturing Day” on Oct. 3, presented by NJBIA’s partners at the New Jersey Manufacturing Extension Program (NJMEP), will showcase these fantastic companies and their products at the largest gathering of its kind in the state. Hundreds of manufacturers, business leaders, students, and elected officials – including the two candidates running in the Nov. 4 election to be New Jersey’s next governor – will be there.

Look for our manufacturers to have an extra spring in their step about their Jersey-made products because a new state law is now making the largest investment in manufacturing in this state’s history. The “Next New Jersey Manufacturing Program,” which NJBIA was proud to help push across the legislative finish line, provides $500 million in tax incentives to spur investments, create jobs, and position our state as a national manufacturing leader.

The tax credits will attract global investment in a wide range of manufacturing activities, including advanced manufacturing, food and beverage production, life sciences, and clean energy component manufacturing, which includes nuclear, solar, geothermal, and green hydrogen. Amid the economic uncertainty caused by federal tariffs and supply challenges, this economic boost couldn’t have come at a better time for New Jersey.

Beyond incentivizing manufacturing investments, the program will also boost workforce development efforts to fill thousands of new positions from the machine operators and assemblers on the factory floors to the engineers and scientists whose cutting-edge research drives innovation in pharmaceuticals, chemicals, and other advanced materials.

The NJEDA’s website has the details about the program, but here are the basics: tax credits for companies that make, acquire or lease investments of $10 million or more at a New Jersey manufacturing facility and successfully create at least 20 new full-time jobs that pay at least 120% of the median salary of manufacturing workers in that county.

Importantly, funding for the program comes from the New Jersey Economic Development Authority’s existing Aspire and Emerge tax credit programs. No new money is involved.

The Next New Jersey Manufacturing Program is the one bright spot for the industry in a FY26 state budget that unfortunately zeroed out the Manufacturing Voucher Program geared toward smaller manufacturers and cut funding for NJMEP in half. Nevertheless, the new tax credits, coupled with the pro-manufacturing tax changes made on the federal level, make this an exciting opportunity to grow manufacturing businesses in New Jersey.

To access more business news, visit NJB News Now.

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