Next New Jersey Manufacturing Program – Expanding the Commitment to Manufacturers

On August 13, 2025, Governor Phil Murphy signed into law A5687/S4407, creating a groundbreaking $500 million tax credit incentive known as Next New Jersey Manufacturing Program (Next NJ or the Program). This ambitious initiative, administered by the New Jersey Economic Development Authority (NJEDA), represents a bold step forward in revitalizing and expanding the state’s manufacturing sector. By combining lessons learned from past programs with new strategies that reflect today’s economic realities, Next NJ positions New Jersey as a national leader in supporting manufacturing, clean energy, and job creation. 

Key Takeaways 

• New Jersey is making a major investment in manufacturing with Next NJ’s $500 million tax credit incentive to attract capital investment and create high-quality jobs. 
• Eligible manufacturers can receive tax credits based on the lesser of: 

• • 0.1% of capital investment × number of new full-time jobs 
  • 25% of total capital investment 
  • $150 million cap per applicant    

• Bonus credits (up to 5%) are available for organizations that meet equity and labor criteria. 
• The Program has a strategic emphasis on the clean energy sector with $100 million reserved for clean energy manufacturers in the first two years — aligning with the state’s climate and innovation goals. 

Program Overview

Next NJ is designed as a competitive tax credit incentive to attract capital investment and generate high-quality jobs across New Jersey. Manufacturers from a wide array of sectors, including advanced manufacturing, non-retail food and beverage, defense, clean energy, and life sciences, are eligible to apply. The tax credit structure is carefully crafted to reward companies that demonstrate a significant commitment to both investment and job creation. 

Tax credits are calculated based on the lesser of three criteria: 

• 0.1% of the total capital investment multiplied by the number of new full-time jobs created 
• 25% of the total capital investment 
• A hard cap of $150 million per applicant 

In addition to these base criteria, companies may qualify for stackable bonuses of up to 5% if they meet specific criteria. These include certification as a Minority/Women-Owned Business, operating in an Opportunity Zone, or maintaining collective bargaining agreements. Such provisions enable the program to stimulate economic growth while also advancing equity and inclusivity within New Jersey’s business community. 

Focus on Clean Energy

A defining feature of the Program is its strategic emphasis on the clean energy sector. Recognizing the critical importance of transitioning to a low-carbon economy, the state has reserved $100 million in tax credits specifically for clean energy manufacturers during the first two years of the Program. Eligible clean energy manufacturers include companies producing components and technologies that support renewable and sustainable energy solutions. This includes industries such as: 

• Solar 
• Geothermal 
• Green hydrogen 
• Offshore wind 
• Nuclear power 
• Fuel cells 
• Battery storage 

By prioritizing these industries, New Jersey seeks to accelerate its progress toward ambitious climate and energy goals while simultaneously creating high-paying, sustainable jobs for residents. This initiative underscores the Murphy Administration’s broader vision of positioning the state as a hub for innovation in renewable energy technologies. 

Program Requirements at a Glance 

To qualify for the Next NJ Program, businesses must meet the following requirements: 

• Be engaged in manufacturing for more than 50% of business operations 
• Make a minimum capital investment of $10 million 
• Create at least 20 new full-time jobs 
• Provide a median salary of at least 120% of the county manufacturing median 
• Demonstrate environmental compliance 
• Maintain collaborative workforce relationships 
• Adhere to prevailing wage standards for construction and building service workers 

These requirements promote the expansion of participating businesses’ own capacity while also contributing to broader community and workforce well-being. 

Building on a Strong Foundation 

New Jersey has long been a champion of its manufacturing sector, recognizing its vital role in driving economic growth, innovation, and job creation. Over the years, the state has introduced a series of targeted tax incentives designed to bolster both large and small manufacturers. Among the most impactful initiatives are: 

• New Jersey Manufacturing Equipment and Employment Credit – Encourages investments in qualified equipment while incentivizing job creation through a multi-year structure. 
• New Jersey New Jobs Investment Tax Credit – Rewards businesses that invest in new or expanded facilities and create significant numbers of new jobs, with eligibility thresholds tailored to company size. 
• New Jersey Research and Development Tax Credit – Stimulates innovation by providing credits to businesses engaged in cutting-edge research and development. 

The following is a comparison of each program:

How We Can help 

Do you need help assessing how the Next New Jersey Manufacturing Program’s tax credit incentives could impact your organization? The EisnerAmper State and Local Tax experts have decades of experience navigating state and local tax credit and incentive opportunities.