Frequently Asked Questions (FAQs)

Get answers to common questions and more specific situations about all kinds of businesses.

What financing and incentive programs are available to manufacturing businesses in New Jersey?

Recent Regulations and Resources

1. Premier Lender Program
2. Direct Loans
3. Bond Financing

(See article: "What financing and incentive programs are available to small and midsize businesses?")

4. Salem County Energy Sales Tax Exemption: Provides an energy sales tax exemption for the retail sales of electricity and natural gas and their transport to manufacturing businesses in Salem County. More information is available at https://www.njeda.com/activeprograms.

5.Urban Enterprise Zones (UEZ) Manufacturers Energy Sales Tax Exemption: Urban Enterprise Zone (UEZ)-certified manufacturers that employ at least 250 full-time workers, at least 50% of whom are involved in the manufacturing process, may be eligible for an exemption from the sales and use tax for electricity and natural gas utilities, both the commodity and its transmission, consumed at theUEZ-certified location. More information is available at https://www.njeda.com/activeprograms.

6. New Jersey Manufacturing Extension Program (NJMEP): NJMEP assists companies in becoming more productive, profitable and globally competitive. The program offers technical and management solutions to competitive problems and represents a valuable resource for businesses. To learn more about the NJMEP, visit the organization’s website at http://www.njmep.org/ or contact MEP Chief Executive Officer John Kennedy, Ph.D. at jkennedy@njmep.org or at 973-998-9801.

7. Sales Tax Exemption on Manufacturing Equipment: New Jersey offers a full 6.625% sales tax exemption on the purchase of eligible manufacturing equipment. The exemption is good for machinery and equipment used directly and primarily in the production of tangible personal property by manufacturing, processing, assembling, or refining.

https://www.njeda.com/financing_incentives/Programs/Salem-County-Energy-Sales-Tax-Exemption-(1)

Companies interested in receiving the exemption can use the Division of Taxation’s ST-4.

http://www.state.nj.us/treasury/taxation/pdf/other_forms/sales/st4.pdf

8. Manufacturing Equipment and Employment Investment Tax Credit Program: Available from the NJ Division of Taxation, the Manufacturing Equipment and Employment Investment Tax Credit provides a credit against corporation business tax liability for investments in certain manufacturing equipment and for certain increased employment. The manufacturing equipment portion of the credit is limited to 2 percent (4 percent for companies with 50 employees or less) of the net cost of qualified equipment up to a maximum allowed credit of $1 million. The employment investment portion of the credit is computed for each of the two succeeding years following the year a credit is allowed for the equipment investment. The tax credit in these years is limited to 3 percent of the net cost of qualified equipment, not to exceed $1,000 per job created directly related to the equipment.

https://www.state.nj.us/treasury/taxation/cbt-creditlist.shtml#Manufacturing

http://www.state.nj.us/treasury/taxation/pdf/current/cbt/305.pdf

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