The Board of the New Jersey Economic Development Authority (NJEDA) has approved rules to create a Personal Protective Equipment (PPE) Manufacturing Tax Credit Program. The program is designed to support investment in PPE manufacturing facilities and equipment to increase the availability of critical public healthcare products and create manufacturing jobs.
The program will provide $10 million in per-job tax credits to New Jersey-based PPE manufacturing projects that have made or will make investments in 2020, 2021, or 2022. To receive the tax credits, a project must meet the following eligibility criteria:
- Manufacture PPE such as face shields, gloves, gowns, masks, respirators, coveralls, safeguard equipment, and other equipment designed to protect the wearer from the spread of infection or illness
- Create a minimum number of new jobs
- Meet a minimum investment threshold for new construction or the improvement or fit-out of existing facilities
- Located in an approved redevelopment or rehabilitation area, Smart Growth Area, or facility engaged in a research collaboration or apprenticeship/pre-apprenticeship program with a New Jersey educational institution
Projects can receive a base tax credit of $10,000 per new job created and individual projects will be capped annually at $500,000. Tax credits are only available for full-time jobs (at least 35 hours per week) paying at least $15 per hour, and offering approved employee health benefits.
The program will provide bonus tax credits for facilities located in Atlantic, Burlington, Cape May, Cumberland, Gloucester, Ocean, and Salem counties.
In addition, bonus per-job tax credits are available for jobs created at a qualified facility that meet the following criteria:
- Located in a previously vacant building: $1,000 per job
- Has approved research collaboration: $1,500 per job
- Has apprenticeship program: $1,000 per job
More details about the program are available here.
Applications for the program will open in the coming months. If you have questions in the meantime or would like to sign up for notifications about the program launch, email Email.
As always, if you have any questions about these or any other state and local tax matters, please contact your Kreischer Miller relationship professional or any member of our State and Local Tax team. For additional news and resources, visit our COVID-19 Resource Center.