Bill Introduced to Improve NJ’s Manufacturing Sector 

On May 14, 2025

Senator Michael Testa (R-01) and Senator Linda Greenstein (D-14), co-chairs of the New Jersey Legislative Manufacturing Caucus, have introduced legislation aimed at improving the state’s manufacturing industry by establishing the “Next New Jersey Manufacturing Program.” As written in the bill, the program, which would be administered by the New Jersey Economic Development Authority, will provide $500 million in tax credits to manufacturers in the state.

“Manufacturing has long been the backbone of New Jersey’s economy, and it’s time we reaffirm our commitment to this vital sector,” said Sen. Testa. “The ‘Next New Jersey Manufacturing Program’ is designed to foster innovation, attract new investments, and create quality careers for our residents. By providing targeted incentives, we’re not only supporting existing manufacturers but also encouraging entrepreneurs to set roots in the Garden State. This initiative represents a strategic step toward revitalizing our manufacturing industry and ensuring its growth for generations to come.”

“This is a landmark piece of legislation that will drive major investments in New Jersey’s manufacturing sector,” added Senator Linda Greenstein (D-Middlesex/Mercer). “With the generous tax incentives included, the ‘Next New Jersey’ program will create high-quality jobs and solidify our state’s status as a leader in clean energy manufacturing. I am proud to sponsor this bill and will continue to push New Jersey toward a more economically prosperous and sustainable future.”

According to the bill, the tax credit program is designed to drive substantial investment, foster the creation of new jobs, and position New Jersey as a leader in the manufacturing economy.

The program will encourage a wide range of manufacturing activities benefitting various industries, including advanced manufacturing; non-retail food and beverage; life sciences; defense; and the production of components for clean energy technologies, such as offshore wind, solar, geothermal, green hydrogen, nuclear energy, fuel cells, battery storage, and other sustainable clean energy solutions.

The program encourages companies to allocate their capital investments to New Jersey while demonstrating a long-term commitment to the state’s economic growth.

A business will not be awarded a tax credit under the program if the business has received a tax credit under other NJEDA programs.

Read the full bill, S-4407, here.

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