The New Jersey Economic Development Authority (NJEDA) has implemented the NEXT New Jersey Manufacturing Program[1] (a tax credit program) aimed at fostering growth in the state’s manufacturing sectors. This initiative offers significant financial incentives to businesses that commit to substantial investments and job creation within New Jersey. By participating in this program, eligible companies can reduce their tax burden and simultaneously contribute to the state’s economic development and innovation goals. The following bulletin outlines the program’s benefits, eligibility criteria, credit transfer restrictions and application due dates to help your business take full advantage of this valuable opportunity.
Program Benefits
- Transferable tax credits for approved projects
- Credit capped at the lesser of:
- 1% of investment times jobs
- 25% of the investment
- $150 million
- Credits may be sold or assigned under specific conditions (see below for transfer restrictions).
Eligibility Criteria
- Eligible businesses in manufacturing industries include advanced manufacturing, non-retail food and beverage, defense, clean energy, and life sciences[2].
- The business must invest a minimum of $10 million in a qualified New Jersey business facility.
- To be a qualified New Jersey business facility, over 50% of facility activity must be manufacturing.
- The business must create at least 20 new full-time jobs.
- The median salary for the new full-time jobs must be at least 120% of the county median for manufacturing.
Transfer Restrictions
- Credits may be sold or assigned in amounts of at least $25,000 within three years of receiving a tax credit transfer certificate.
- Credits cannot be sold for less than 85% of their value (before further discounting to present value).
Application Period
- Applications accepted: September 25, 2025 – March 1, 2029.
- Program closes earlier if funds are depleted.
If you have questions about eligibility or the application process, or how this program may be combined with other federal and state tax provisions to minimize your tax liability, please contact Richard Goldstein, Leader of SAX’s State and Local Tax Practice at rgoldstein@saxadvisorygroup.com.
[1] The Next New Jersey Manufacturing Program, Act, P.L. 2025, c. 123, was signed into law by Governor Murphy on August 13, 2025.
[2] “Manufacturing” does not include refurbishing/repairing goods, retail, wholesale, packaging, software development, resource extraction, waste incineration, or agriculture.