NJ is Making Largest Manufacturing Investment in State History

By Jim Pytell, Managing Editor On Jul 18, 2025

The New Jersey Legislature recently passed a bill that creates the Next New Jersey Manufacturing Program, which will provide $500 million in new tax credits for manufacturing, marking the largest manufacturing investment in state history.

“We’re giving manufacturers and entrepreneurs the tools they need to grow, compete globally, and succeed right here in the Garden State,” said bill co-sponsor Senator Michael Testa (R-1), at a manufacturing webinar hosted by NJBIA yesterday. “It is a modern revival of the message proudly displayed on the Lower Trenton Bridge — ‘Trenton Makes, The World Takes.’”

The program will incentivize various manufacturing activities, including advanced manufacturing, food and beverage production, life sciences, defense, and clean energy component manufacturing, all with the aim to drive innovation, create jobs, and bolster the overall manufacturing sector in the state.

NJBIA Chief Government Affairs Officer Christopher Emigholz called the legislation monumental for manufacturing and the overall business climate in New Jersey.

“Coupled with federal uncertainty regarding some manufacturing programs that companies rely upon, this legislation really is a no-brainer,” Emigholz added. “It requires no new additional funding and enjoys bipartisan support from the Legislature’s Manufacturing Caucus.”

To qualify for tax credits under the program, which would be administered by the New Jersey Economic Development Authority (NJEDA), an eligible business would be required to:    

• Make, acquire, or lease no less than $10 million in capital investments at a qualified business facility in New Jersey. 

• Create at least 20 new full-time jobs in New Jersey.   

• Provide a median salary for the full-time jobs at the qualified business facility of no less than 120% of the median salary for manufacturing employees in the county in which the project is located.

Separately, under the bill, $100 million of the $500 million in tax credits would be exclusively reserved for clean energy product manufacturers during the first two years of the program.

If the NJEDA awards less than $100 million in tax credits reserved for clean energy product manufacturers during that two-year period, the uncommitted portion could be awarded to any other eligible manufacturer in the third year of the program.

Under the legislation, clean energy is defined as offshore wind, solar, geothermal, green hydrogen, nuclear energy, fuel cells, battery storage, and other sustainable clean energy solutions

Testa said that while the mere mention of clean energy may evoke certain feelings about the state’s offshore wind industry struggles, the $100 million portion aims to hit myriad manufacturers, such as those involved in nuclear energy, for example.

“If $1 billion was not able to save one singular project in Ørsted  , $100 million that is not even dedicated specifically to offshore wind is not going to resuscitate or revive an entire industry,” Testa said.

He then pointed to Camden-based Holtec, which makes small modular reactors with a focus on nuclear energy, as an example of a company that would likely benefit from the clean energy portion of the tax credits.

“This is not an offshore wind bill,” Emigholz said. “The clean energy portion only accounts for 20% of the program and the definition of clean energy under the bill includes nuclear, which by all accounts will be increasing in New Jersey.”

He also added that if a New Jersey manufacturer is creating parts or mechanisms for wind projects anywhere else in the world, the state is still the beneficiary of the jobs and revenue created.

Additionally, the Next New Jersey Manufacturing Program comes at a time when President Donald Trump has signed the One Big Beautiful Bill Act (OBBBA) into law earlier this month.

Characterized by the National Association of Manufacturers (NAM) as a manufacturing bill, OBBBA aims to incentivize manufacturing, supply chains and job creation in the states. 

“I truly believe most New Jerseyans want to see us working together to bring great legislation to help all citizens and create a better version of the Garden State,” Testa said. “I see this working as a hand in glove process with this program. I want to work with the Federal administration to make manufacturing great again in the state of New Jersey.” 

To access more business news, visit NJB News Now.

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