Considering a $25,000 or more manufacturing equipment investment in New Jersey for 2025? Keep reading to learn how to make the most of this opportunity!

On September 11, 2024, the New Jersey Economic Development Authority (NJEDA) Board approved $10 million in funding for Phase III of the New Jersey Manufacturing Voucher Program (MVP), with applications expected to open in early 2025. Building on the success of the previous phases, Phase III introduces a new two-week priority window for new applicants. Given the fierce competition in Phases I and II, where funding was quickly exhausted, companies planning to apply should prepare ahead of time. This next round is expected to be equally competitive, making early preparation crucial for securing a grant.

Background on the Program

Governor Phil Murphy launched the MVP as a pilot program in October 2022 as part of New Jersey’s broader efforts to strengthen its manufacturing sector. In Phase I, $20 million was allocated to help manufacturers modernize by purchasing essential equipment that improves operational efficiency and integrates advanced technologies. Following its success, Phase II expanded on this with an additional $20 million of funding and made the program more accessible by streamlining the application process and enhancing support for applicants through partnerships with organizations like the New Jersey Manufacturing Extension Program (NJMEP).

Program Benefits

The MVP reimburses 30-50% of eligible equipment costs, with a minimum and maximum award of $7,500 and $250,000 per applicant, respectively. This financial assistance helps manufacturers reduce the upfront cost of purchasing modern equipment, making it easier to invest in productivity-enhancing technologies.

Businesses that are woman-, minority-, or veteran-owned, located in Opportunity Zones, operating with active collective bargaining agreements, or employing fewer than 50 people are eligible for stackable bonus incentives of 5% each. Additionally, manufacturers purchasing equipment from New Jersey-based suppliers may qualify for a 10% bonus. Higher award percentages may also be available for small businesses with fewer than 100 full-time employees.  Companies with over 100 full-time employees are capped at 40% of the award.

Business Eligibility

The program is primarily designed to support small and mid-sized manufacturers. While specific revenue or employee thresholds are not explicitly stated, the target is typically businesses with fewer than 500 employees.

Eligible applicants must meet certain criteria, such as:

• being in a targeted industry (g., advanced transportation and logistics, advanced manufacturing, aviation, information and high technology, life sciences and pharmaceuticals, clean energy, food production and agriculture, and other innovative industries that disrupt current technologies or business models);
• spending at least $25,000 on the project, including installation costs;
• purchasing new and/or used equipment that will be used in the manufacturing process;
• pay prevailing wages on contracts exceeding $2,000 and requiring installation;
• pay a non-refundable $1,000 application fee; and
• agree to stay in New Jersey for at least three years or be subject to potential recapture of the award.

Projects where a contract has been signed, a Purchase Order placed, or a deposit made before submitting an application are not eligible for the program.

Phase III Priority Application Window

A two-week priority application window has been introduced for new applicants who have not received MVP funding in the previous rounds. This is a significant change, as it ensures that a broader group of manufacturers, especially those who may have struggled to compete in earlier phases, can now have their applications reviewed without being overshadowed by repeat applicants.

Get a Head Start: Winning Strategies for MVP Phase III Applications

To prepare for Phase III of the MVP, manufacturers should ensure their eligibility, gather necessary documentation, and be ready to apply as soon as the application window opens in early 2025. Businesses should first verify they fit the program’s criteria, which prioritize small to mid-sized manufacturers in key sectors like advanced manufacturing, life sciences, and clean energy. Companies can also increase their chances of securing additional funding through stackable bonus incentives, such as being women-, minority-, or veteran-owned, located in Opportunity Zones, or having collective bargaining agreements​.

Manufacturers should identify the eligible equipment they plan to purchase, such as automation systems or energy-efficient technologies, and gather quotes and financial documentation to support their application. Ensuring compliance with state regulations and obtaining a Tax Clearance Certificate is also essential for a successful application. First-time applicants should note the two-week priority window in Phase III and prepare their applications in advance to maximize their chances of receiving funding.

If your company is considering a manufacturing investment project in 2025 of at least $25,000 in New Jersey, we invite you to contact us for specialized assistance with the MVP. Our team is committed to guiding you through every stage of the process—from assessing your eligibility to submitting a complete application and ensuring compliance. We simplify the complexities of the program, helping you maximize the financial support available to enhance your manufacturing operations. Contact us today to discover how we can help you take full advantage of this valuable opportunity and achieve your business goals.