NEW JERSEY – Governor Phil Murphy Monday announced the creation of a pilot program that will provide New Jersey manufacturers grants for the purchase of equipment they need to improve their operations.
The New Jersey Manufacturing Voucher Program (MVP) will be developed and administered by the New Jersey Economic Development Authority (NJEDA) and funded with $20 million from the FY2023 budget.
“Manufacturers play a critical role in the supply chain, creating the products people rely on here in New Jersey and around the world,” Murphy said. “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.”
The program will focus on New Jersey manufacturers within targeted industries that will purchase equipment to integrate advanced or innovative technologies, processes, and materials to improve the manufacturing of their products. The MVP will offer grants valued at 30 to 50 percent of the cost of eligible equipment, including installation, up to a maximum award amount of $250,000.
“As one of the one of the high-growth sectors identified in Governor Phil Murphy’s economic development strategic plan, manufacturing is critical to New Jersey’s economy for the goods and services it contributes to the global economy, and for the skilled jobs it creates,” said NJEDA Chief Executive Officer Tim Sullivan. “The MVP will help companies keep pace with the latest equipment developments and make capital available that can be used for growth opportunities.”
“New Jersey’s manufacturing industry has a long history as a premier provider of quality jobs and superior products distributed throughout the tri-state area, the nation, and the globe,” said New Jersey Department of Labor and Workforce Development Commissioner Robert Asaro-Angelo. “Through NJ MVP, our partners in manufacturing will have the support needed to procure the latest in technology and materials, attract and develop innovative talent, and continue up the path of growth and success. This novel program is exactly the kind of investment our manufacturing Industry Partnership members have been looking for.”
The MVP will offer stackable bonuses for certified woman-, minority-, or veteran-owned businesses, businesses in Opportunity Zones, and businesses purchasing manufacturing equipment in New Jersey, as well as bonuses for companies that have a collective bargaining agreement in place.
The MVP will also provide higher award percentages for small businesses with fewer than 100 full-time equivalent (FTE) employees.
Both for-profit and not-for-profit companies are eligible, not including home-based businesses. Projects where a contract has been signed, a purchase order has been placed, or a deposit has been made in advance of submitting an MVP application will not be considered for funding.
Eligible applicants must meet several criteria, including:
- Applicant must be in a targeted industry
- Equipment (new or used) must be located and installed at a New Jersey location, and must be used in the manufacturing process
- Applicant must provide a purchase quote, order proforma, and/or an equipment listing, and must obtain a tax clearance certificate
- Aggregated project cost, including equipment and installation, must be at least $25,000
In addition to the eligibility parameters stated above, applicants must also be in substantial good standing with the NJ Department of Labor and Workforce Development, the NJ Department of Environmental Protection, and the NJ Division of Taxation at the time of approval to be eligible for MVP. All equipment installation contracts (including manufactures/supplier agreements) of $2,000 or more are subject to Prevailing Wage Law under EDA statute.
More details on the program and an application will be made available in the coming months. Applications will be accepted on a rolling basis and remain open until all funds are committed.