Governor Murphy announced the development of a pilot program to give New Jersey manufacturers grants to purchase equipment necessary to improve their business operations on October 17, 2022.
The New Jersey Manufacturing Voucher Program (MVP) will be created and administered by the NJ Economic Development Authority (NJEDA) and funded with approximately $20M from the 2023 State Budget. The program targets New Jersey manufacturers within specific 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% of the cost of eligible equipment, including installation, up to a maximum award of $250,000.
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, and rewards for companies with a collective bargaining agreement. The MVP will also allot higher award percentages for small companies with less than 100 full-time equivalent (FTE) employees. Additionally, for-profit and not-for-profit companies are eligible, not including home-based businesses. The EDA will not consider MVP applications if there is either a project with a signed contract, a purchase order placed, or a deposit made before submitting an MVP application.
Applicants must meet specific criteria, including but not limited to the following:
- Applicant must be in a targeted industry,
- New or used equipment must be located and installed at a New Jersey location and used in the manufacturing process,
- Applicant must provide a purchase quote, order proforma, or an equipment listing and must obtain a tax clearance certificate, and
- Aggregated project cost, including equipment and installation, must be at least $25,000.
Furthermore, applicants must be in good standing with the Department of Labor and Workforce Development, the Department of Environmental Protection, and the Division of Taxation at the time of approval to be eligible for MVP. All equipment installation contracts, including manufacturers/supplier agreements, of $2,000 or more fall under the Prevailing Wage Law under the EDA statute.
The EDA accepts applications on a rolling basis until the commitment of all funds.