The New Jersey Manufacturing Voucher Program (NJ MVP) is poised to significantly transform the landscape for manufacturers within the state. This initiative aims to empower businesses with equipment grants ranging from 30% to 50% of the eligible equipment cost, covering installation expenses as well. The maximum award amount is an impressive $250,000, making it a substantial incentive for manufacturers adopting advanced or innovative technologies, processes, and materials.
Targeted Industries and Inclusive Bonuses
NJ MVP is strategically designed to benefit manufacturers in targeted industries, with a focus on those embracing cutting-edge advancements. The program extends its support to certified woman-, minority-, and veteran-owned businesses (WMVB), entities within opportunity zones, and those with a collective bargaining agreement in place. Furthermore, small businesses with fewer than 100 Full Time Equivalents employees (FTE) are eligible for higher award percentages.
NJ MVP introduces stackable bonuses to enhance the attractiveness of the program:
5% Bonuses (Stackable)
- Equipment installed in an Opportunity Zone Eligible Census Tract
- Certified WMVB
- At least one Collective Bargaining Agreement in place
10% Bonuses (Stackable)
- Purchase equipment from a New Jersey Manufacturer (must be manufactured/assembled in NJ)
Eligible Funding Uses
Funding from NJ MVP can only be utilized for the purchase and installation of equipment employed in the manufacturing process. Eligible assets include a wide range of manufacturing and technologically advanced equipment, from robotics and additive manufacturing to IIoT (industrial internet of things) systems. The program is open to both for-profit and not-for-profit companies, with the exclusion of home-based businesses.
To qualify for the program, companies must meet the following criteria:
- Belong to a Targeted Industry or have equipment meeting the Advanced Manufacturing definition.
- Obtain a Tax Clearance Certificate.
- Ensure equipment is located and installed at a New Jersey location.
- Provide a Purchase Quote, Order Proforma, and/or Equipment Listing.
- Maintain substantial good standing with the New Jersey Department of Labor and Workforce Development and the NJ Department of Environmental Protection.
Award Size and Distribution
Grant awards range from 30% to 50% of the eligible project cost, with a minimum award of $7,500 and a maximum award capped at $250,000 per applicant. Companies can submit multiple project applications, but the aggregate amount awarded to any one company must not exceed $250,000 over the program's lifespan. The delivery and installation of equipment must be completed within 12 months, with the possibility of two 6-month extensions.
Fees and Recapture Policy
Applicants are required to pay a standard application fee of $1,000 per application. Additionally, the program incorporates a recapture policy to ensure commitment from recipients. If a company decides to relocate out of state within the first three years of the executed grant agreement, recapture of funds will be imposed on a scaled basis.
Applications are accepted on a rolling basis, emphasizing the importance of early engagement to secure these valuable benefits. Applications are anticipated to be released on February 12, 2024.