NEW JERSEY MANUFACTURERS HAVE ACCESS TO FUNDING FOR NEW EQUIPMENT
NJEDA’s NEW JERSEY MANUFACTURING VOUCHER PROGRAM (NJMVP) CONTINUES TO INVEST IN ADVANCED MANUFACTURING TECHNOLOGIES
The state of New Jersey has allotted an unprecedented amount of money to be used specifically to support the ‘MADE in New Jersey’ manufacturing industry. Some of these funds were used to develop the New Jersey Manufacturing Voucher Program (NJMVP). In 2022, $20 million was set aside by Governor Murphy in the state’s budget to fuel this pilot grant program to assist New Jersey manufacturing businesses with securing new advanced manufacturing equipment. The goal of the NJMVP is to have these businesses invest in themselves to help create a more competitive domestic manufacturing base here in the Garden State.
Through close collaboration between the New Jersey Manufacturing Extension Program (NJMEP) and the New Jersey Economic Development Authority (NJEDA), the program was developed to overcome one of the largest hurdles in the manufacturing space—acquiring new advanced manufacturing equipment, which can often cost tens of thousands, hundreds of thousands or even millions of dollars.
On May 4, 2023, NJEDA Chief Executive Officer Tim Sullivan announced over $8 million awarded vouchers during the 8th Annual State-of-the-State Manufacturing Summit, hosted in Trenton by NJMEP. Sullivan also went on to announce a further $20 million that Governor Murphy has set aside in the Fiscal Year 2024 budget—which has recently been signed into law. The added $20 million budget brings the NJMVP’s available funding to nearly $40 million in order to meet the robust application demand and to continue fueling innovation and growth in the Garden State’s manufacturing sector.
NJMVP PROGRAM OVERVIEW
NJMVP aims to provide equipment grants to manufacturers that are purchasing eligible equipment. The grant can cover anywhere from 30%- 50% of the cost, depending on a variety of factors. The award amount will be capped at $250,000. Funding can only be used for the purchase and installation of new and/or used equipment in the manufacturing process. This can include production equipment on the shop floor or digital technologies that aid in the production process. Technologically advanced equipment, production/operating systems, robotics, additive manufacturing, hardware or software for digital twinning, advanced sensor or control systems, IIoT, and even systems related to security can all be eligible under the NJMVP program.
Manufacturers can receive bonus awards to offset the cost of new equipment by up to 50%. Every manufacturer that applies and is awarded a grant will start with a 30% voucher. Stackable 5% bonuses are available for each of the qualifying areas listed below:
- Equipment is installed in a location within an Opportunity Zone Eligible Census Tract
- The NJEDA provides a tool to track locations
- A business is a Certified Woman, Minority, or Veteran Owned Business
- Has at least one Collective Bargaining Agreement in place
An additional 10% bonus is available if the equipment is purchased from a New Jersey manufacturer. The equipment needs to be manufactured and/or assembled in the state. NJMEP is working to secure a list of suppliers that can provide equipment. If any businesses are looking to source new equipment from New Jersey or would like to be added to the list of New Jersey manufacturing equipment providers, please contact firstname.lastname@example.org.
WHAT MANUFACTURERS NEED TO KNOW
Nearly any kind of manufacturer will be eligible for the NJMVP program if they are purchasing manufacturing equipment that improves the production process. The only businesses that are ineligible to receive a voucher are those that are based out of the home.
The equipment being purchased must also be located and installed in a New Jersey location. If a business is headquartered in New Jersey but wants to install equipment out of state, it will not qualify for funding. Additionally, both for-profit and not-for-profit companies will be eligible.
Manufacturers must also be aware that if they leave the state in any tax period within the first 3 years of the grant being executed there will be a scaled recapture of the award based on the below criteria:
- 100% recapture of funds if a company moves out within 1 year
- 60% recapture of funds if a company moves out within 2 years
- 30% recapture of funds if a company moves out within 3 years
Applications are being accepted on a rolling basis, and the program will remain open until all funds are used. To track the application process and to find any answers to frequently asked questions, visit NJEDA.com/NJMVP.
OUR MISSION: YOUR RESOURCE
With all the intricacies involved in this program and the risk of investing in new equipment and technologies, businesses must work with a trusted partner to ensure their investment doesn’t go to waste. New Jersey Manufacturers will face particular challenges when considering the best technology they can purchase, that will ideally offer the highest ROI, and they must also consider where their new equipment should be placed to ensure production benefits as much as possible. NJMEP is helping to connect manufacturers with equipment suppliers, study their plant layout, and offer expert solutions to help get the most out of every square foot. These industry experts also run ROI studies in an effort to assist New Jersey manufacturers with this exciting journey.
This is a massive step forward for the New Jersey manufacturing industry. One program or grant won’t solve every challenge the domestic industry is facing, but the NJMVP program is a testament that the voice of manufacturing is being heard. Manufacturers have been offered the opportunity to stand up and speak out at events like NJMEP’s State-of-the-State of Manufacturing, and that effort is beginning to pay off. Both state and federal governments are starting to realize the true scope and scale of the domestic manufacturing industry and, more importantly, understand why it is a critical industry for our economy. As businesses continue to stand up to educate policymakers on the state of the industry and what support is needed, more of these programs will continue to make their way to ‘MADE in New Jersey’ manufacturing businesses.