What financing and incentive programs are available to manufacturing businesses in New Jersey?
1. Premier Lender Program
2. Direct Loans
3. Grow NJ Assistance Program
4. Bond Financing
(See article: "What financing and incentive programs are available to small and midsize businesses?")
5. Salem County Energy Sales Tax Exemption
The program provides an energy sales tax exemption for the retail sales of electricity and natural gas and their transport to manufacturing businesses in Salem County. The energy and utility services must be consumed exclusively at the facility.
• The business must be located in Salem County.
• The business must be a manufacturer.
• The business must employ at least 50 people, at least 50% of whom are directly involved in the manufacturing process.
• The business must not be in default with any other state program.
• Annual renewal applications are required 45 days prior to the expiration of the energy sales tax exemption.
All fees are non-refundable.
Division of Taxation Tax Clearance Certificate required. Certificates may be requested through the State of New Jersey’s Premier Business Services (PBS) portal online.
• Under the Tax & Revenue Center, select Tax Services, then select Business Incentive Tax Clearance.
• If the applicant’s account is in compliance with its tax obligations and no liabilities exist, the
Business Incentive Tax Clearance can be printed directly through PBS.
Please note: It is the applicant/client’s responsibility to maintain a current and clear tax clearance certificate. If a current and clear certificate is not evidenced to EDA at time of closing, EDA will not proceed with closing.
https://www.njeda.com/financing_incentives/Programs/Salem-County-Energy-Sales-Tax-Exemption-(1)
6. Urban Enterprise Zones (UEZ) Manufacturers Energy Sales Tax Exemption
This program provides an exemption of sales and use tax for retail sales of electricity and natural gas and their transport for eligible manufacturing businesses located in a New Jersey UEZs. To qualify for the program, a business must meet the following eligibility criteria:
The business must be a manufacturer and must continue to employ at least 250 full-time workers, at least 50% of whom are involved in the manufacturing process.
• The business will file an annual application with the EDA and must receive tax clearance and pass a site visit.
• The sales and use tax exemption applies to only electricity and natural gas consumed at the UEZ-certified manufacturing locations and cannot be applied to oil or other energy supplies.
• The business must maintain its UEZ certification throughout the exemption period.
Division of Taxation Tax Clearance Certificate required. Certificates may be requested through the State of New Jersey’s Premier Business Services (PBS) portal online.
• Under the Tax & Revenue Center, select Tax Services, then select Business Incentive Tax Clearance.
• If the applicant’s account is in compliance with its tax obligations and no liabilities exist, the Business Incentive Tax Clearance can be printed directly through PBS.
Please note: It is the applicant/client’s responsibility to maintain a current and clear tax clearance certificate. If a current and clear certificate is not evidenced to EDA at time of closing, EDA will not proceed with closing.
Fees apply and are non-refundable.
https://www.njeda.com/financing_incentives/Programs/Urban-Enterprise-Zones-(UEZ)-Manufacturers-Energy
7. 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.
8. 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
9. 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
