The New Jersey Economic Development Authority (NJEDA) Board recently approved rules to enact the creation of the Personal Protective Equipment (PPE) Manufacturing Tax Credit (PMTC) Program. Created under the New Jersey Economic Recovery Act of 2020 (ERA), the PMTC Program will provide tax credits to incentivize the development of PPE manufacturing in New Jersey. More information is available at https://www.njeda.com/ppe.
“In line with Governor Phil Murphy’s vision to build a stronger and fairer economy, the PMTC Program is an investment in our communities and in our small businesses as we continue to recover from the COVID-19 pandemic,” said NJEDA Chief Executive Officer Tim Sullivan. “This program is designed to encourage PPE manufacturing here in New Jersey, which will help create new manufacturing jobs, protect New Jerseyans’ health, and increase economic benefits to the State by generating economic activity and providing more local sources of PPE goods.”
The PMTC Program provides per-job tax credits to PPE manufacturing projects in New Jersey that have made or make investments in 2020, 2021, or 2022. Projects can receive up to a maximum of $500,000 in tax credits per year in which they make qualified investments.
Eligibility for the PMTC Program and bonus tax credits are based on the project location, the size of the capital investment being made in PPE production, the size of the facility being used, and other criteria. Comprehensive eligibility and bonus criteria can be found at https://www.njeda.com/ppe.
All projects that receive tax credits through the PMTC Program must comply with the NJEDA’s standard Affirmative Action and Prevailing Wage requirements. Since applications must be submitted after a project is complete, potential applicants must ensure they plan ahead and pay Prevailing Wage for all work done on the projects to maintain eligibility for the program. For projects that are already underway, the Prevailing Wage requirements will only apply to work done after the proposed rules are filed with the Office of Administrative Law.
Applications for the PMTC Program will open in the coming months. For immediate questions and to sign up for notifications of the PMTC Program launch, email PPEmanufacturingtaxcredit@NJEDA.com.
In addition to the PPE Manufacturing Tax Credit program, the Economic Recovery Act creates and expands a suite of programs that includes tax credits to incentivize job creation, new construction, and revitalization of brownfields and historic properties; financial resources for small businesses; support for new supermarkets and healthy food retailers in food desert communities; new funding opportunities for early-stage companies in New Jersey; and support for the growing film and digital media industry. The NJEDA will continue to engage the public as new programs and rules are developed.
For more information and to provide written input on the design and implementation of Economic Recovery Act programs, visit https://www.njeda.com/economicrecoveryact/.