A Senate panel on Monday advanced legislation, supported by NJBIA and NJMEP, that would make tax incentives available to eligible New Jersey manufacturers to encourage investment in the state, create new jobs and position New Jersey as a leader in the manufacturing economy.

The bill, A-5687, sponsored by Assembly Majority Leader Lou Greenwald (D-4), would create the “Next New Jersey Manufacturing Program” administered by the New Jersey Economic Development Authority using $500 million from the existing Aspire and Emerge tax credit programs.  The Assembly Labor Committee voted to release the bill.

NJBIA Chief Government Affairs Officer Christopher Emigholz testified in strong support of the bill, which he noted was included in Gov. Phil Murphy’s FY26 budget proposal. It requires no new additional funding, and enjoys bipartisan support from the Legislature’s Manufacturing Caucus.

“Manufacturing is important, and we need to get back to making more things in New Jersey and in our country because that’s what makes the economy go,” Emigholz told the committee, noting the bill was especially important in the current economic and political environment.

“Manufacturing is under attack to some extent,” Emigholz pointed out. “There’s great federal uncertainty with some of the manufacturing programs that companies rely upon around the country that are looking to be cut. The tariff uncertainty and the supply chain uncertainty are things manufacturers are struggling with ... so this bill is necessary for an important industry.”

Peter Connolly, the CEO of the New Jersey Manufacturing Extension Program (NJMEP), told the committee there are over 11,000 manufacturing companies operating across the state importing, exporting, hiring, creating products, and making contributions to their communities.

The bill "represents a vital investment in New Jersey’s future, supporting the full spectrum of manufacturing, including the clean energy sectors, while empowering the workforce that drives them,” Connolly said. “NJMEP is prepared to stand alongside NJEDA and every business this program attracts to offer targeted training, consulting, and workforce development. With this robust support in place, this $500 million incentive can translate into real high-quality jobs and tangible economic opportunity for the people of New Jersey.”

The proposed program would incentivize 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.

Under the bill, $100 million of the $500 million in tax credits would be exclusively reserved for clean energy product manufacturers during the first two years of the program. However, if the NJEDA awards less than $100 million in tax credits reserved for clean energy product manufacturers during that two-year period, the uncommitted portion could be awarded to any other eligible manufacturer in the third year of the program.

To qualify for tax credits under the program, an eligible business would be required to:

• make, acquire, or lease not less than $10 million in capital investments at a qualified business facility in New Jersey;
• create at least 20 new full-time jobs in New Jersey;
• provide a median salary for the full-time jobs at the qualified business facility of not less than 120% of the median salary for manufacturing employees in the county in which the project is located.

Under the bill, the amount of the tax credit would equal to the lesser of 0.1% of the eligible business’s total capital investment, multiplied by the number of new full-time jobs; or 25% of the eligible business’s total capital investment; or $150 million. However, the bill also authorizes the NJEDA, in its discretion, to establish one or more bonus credit awards