New Jersey has a new incentive program in the works that will provide manufacturers grants to purchase equipment needed to make their operations more efficient and productive.
The New Jersey Manufacturing Voucher Program (MVP), which will be funded with $20 million from the state’s fiscal year 2023 budget and administered by the New Jersey Economic Development Authority, will focus on targeted industries, according to the state’s release. New Jersey manufacturers that purchase equipment to improve the manufacturing of their products through “advanced or innovative technologies, processes, and materials” may qualify for grants valued at 30% to 50% of the cost of eligible equipment purchased, capped at a maximum of $250,000 per manufacturer.
Stackable bonuses are planned for women-, minority-, and veteran-owned businesses, as well as businesses that operate in Opportunity Zones, businesses that purchase the qualifying equipment in New Jersey, and small businesses (defined as those with fewer than 100 full-time equivalent employees). Companies that have a collective bargaining agreement in place will also be eligible for additional funding.
Criteria for eligibility in the MVP include:
- Must be in a targeted industry
- Equipment must be located and installed at a location in New Jersey and must be used in the manufacturing process
- Must provide a quote, order form, and/or equipment listing
- Must obtain a tax clearance certificate
- Total project cost, including installation, must be at least $25,000
- Must be in good standing with the NJ Department of Labor, Department of Environmental Protection, and Division of Taxation
More details on the process will be released in the coming months, according to the release. Applications will be accepted until all funds are committed.
Subject matter expertise
JD, Principal, Practice Leader, State and Local Tax (SALT) Services
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