In an effort to assist New Jersey manufacturers and grow the manufacturing base in the state, Governor Phil Murphy recently announced the New Jersey Manufacturing Voucher Program (MVP). The MVP is a $20M grant program aimed at upgrading and modernizing manufacturing equipment and facilities within New Jersey. This program will focus on New Jersey manufacturers in targeted industries who plan to purchase equipment to integrate advanced or innovative technologies, processes, and materials to improve the manufacturing of their products.
The program will be run by the New Jersey Economic Development Authority (NJEDA), and applications are expected to be open by the end of 2022. The grants will be distributed on a first-come first-served basis until program funds are depleted and will cover 30% to 50% of the cost of eligible equipment up to a maximum of $250,000.
Eligible applicants must meet several criteria, including:
- Applicants must be in a targeted manufacturing industry.
- Equipment, both new or used, must be located and installed at a New Jersey location and must be used in the manufacturing process.
- Applicants must provide a purchase quote, order proforma, and/or an equipment listing, and must obtain a tax clearance certificate. The grant application must be submitted and approved by the NJEDA prior to signing a contract, placing a purchase order, making a deposit, or making any other type of commitment related to the project in order to be eligible for the grant program.
- The aggregated project cost, including equipment and installation, must be at least $25,000.
The program also offers a 5% stackable bonus for women, minority, and veteran-owned businesses, businesses that have a collective bargaining agreement in place, and businesses with equipment located in qualified Opportunity Zone Eligible Census Tracts. Additionally, there is a 10% stackable bonus if the equipment being purchased is made or assembled in New Jersey.
How Citrin Cooperman Can Help
Citrin Cooperman’s Manufacturing and Distribution Practice has a team dedicated to helping company leaders in the industry make informed decisions that improve efficiencies, reduce costs, and improve their bottom line. If you have questions on how your manufacturing company can take advantage of the New Jersey MVP tax credit, please reach out to Laura Crowley at firstname.lastname@example.org or Harper Garrett at email@example.com.
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