New Jersey to Offer Voucher Incentive Program for Manufacturers
October 18, 2022
By Travis Epp
New Jersey-based manufacturers are poised to benefit from a new grant program that will promote participation and integration with new and innovative industries.
The $20 million pilot program offers state manufacturers grants ranging from 30% to 50% (up to $250,000) on the costs of eligible equipment and installation. These expenditures need to focus on promoting advanced and innovative technologies, processes and materials.
Announced by NJ Governor Murphy’s office on October 17, 2022, the New Jersey Manufacturers Voucher Program (“MVP”) aims to provide the state’s manufacturers with funding to access the equipment they need to grow operations, increase profits and enter emerging industries.
Applications will likely be via an online portal by the end of this year, and they will be accepted on a rolling basis. Eligible applicants must meet specific criteria such as being in a targeted industry, having the equipment located in a New Jersey location, as well as possessing a purchase quote, tax clearance certificate, and documented aggregate project cost of at least $25,000.
The MVP is open to both nonprofit and for-profit manufacturers of all sizes. Organizations with fewer than 100 full-time employees; are women-, minority- or veteran-owned; operate in Opportunity Zones; purchase equipment from a NJ business; or have a collective bargaining agreement in place are eligible for additional bonuses and higher grant percentages. Home-based businesses are not eligible.
The New Jersey Economic Development Authority (“NJEDA”), which would run the proposed program, approved it during its October 12, 2022, board meeting. NJEDA CEO Tim Sullivan stated that the program is set to target the following industries: specifically:
- Advanced Logistics
- Advanced Manufacturing
- Advanced Transportation
- Advanced Transportation + Logistics
- Autonomous Vehicle Research and Development
- Clean Energy
- Film and Digital Media
- Finance and Insurance
- Hemp Processing
- High Technology
- Information Technology
- Life Sciences
- Non-Retail Food and Beverage
- Professional Services
- Zero-Emission Vehicle Research or Development
“Manufacturers play a critical role in the supply chain, creating the products people rely on here in New Jersey and around the world,” said the governor. “By facilitating the purchase of equipment manufacturers need, this program will help these businesses become more efficient, productive and profitable. Supporting our manufacturers will promote economic development and ultimately benefit our state’s broader business community as a whole.”