New Jersey Manufacturing Voucher Program Launched
By Barry Halpern, Partner, Tax & Business Services
New Jersey Governor Phil Murphy has enacted a $20 million pilot program that aims to strengthen the state’s manufacturing sector and attract new investment. The New Jersey Manufacturing Voucher Program (MVP) provides grants to New Jersey-based manufacturers for the purchase of equipment needed to improve operations and profitability.
The program will focus on New Jersey manufacturers within targeted industries and the purchase of equipment that will be utilized to integrate advanced or innovative technologies, processes, and materials.
MVP grants are valued at 30% to 50% of the cost of eligible equipment, including installation, up to a maximum award amount of $250,000 per company. The program will provide higher award percentages for small businesses and added bonuses for certain qualified businesses including certified woman-, minority-, and veteran-owned businesses (WMVB), Opportunity Zones businesses or purchased from a New Jersey-based manufacturer.
To be eligible to apply for an MVP grant:
- Applicant must:
- Be in a targeted industry or equipment must be considered “advanced manufacturing.”
- Be registered to do business in New Jersey and maintain a valid tax clearance certificate.
- Be in good standing with New Jersey Department of Labor and Workforce Development (LWD) and New Jersey Department of Environmental Protection (DEP) at the time of approval.
- Provide a purchase quote, purchase order, proforma, and/or equipment listing.
- Equipment must be located and installed at a New Jersey location.
- The aggregated cost, including equipment and installation, must be at least $25,000.
While for profit and not-for-profit corporations are eligible for an MVP grant, home-based businesses are not.
Applications must be submitted prior to commitments such as a signed contract, purchase order, or purchase deposit. Applications are expected to be available online by the end of 2022 and will be accepted on a rolling basis and remain open until all funds are committed.
For additional information regarding the New Jersey MVP grant opportunity and its impact on your business, or other state business credits and incentives opportunities, contact Barry Halpern at Barry.Halpern@marcumllp.com, or your Marcum State and Local credits and incentives professional.