The New Jersey Manufacturing Voucher Program is a $20,000,000 pilot grant program to assist New Jersey Manufacturers with accessing the manufacturing equipment they need to become more efficient, productive, and profitable. The pilot program will provide grants for a portion of eligible equipment costs, up to a maximum award amount of $250,000 per manufacturer.
The program is intended for manufacturers within targeted industries that will purchase equipment that integrates advanced or innovative technologies, processes, and materials to improve the manufacturing of products. The program also offers bonuses focused on certified woman-owned, minority-owned, and veteran-owned businesses (WMVB), as well as businesses located in opportunity zone eligible census tracts businesses with less than 100 Full Time Equivalent employees (FTE), as well as bonuses for companies that have a collective bargaining agreement in place.
Applications will be accepted on a rolling basis and remain open until all funds are committed. Applications are expected to be available by the end of 2022.
PROGRAM DETAILS
New Jersey Manufacturers Voucher Program (NJ MVP) will provide equipment grants sized at 30% – 50% of the cost of the eligible equipment (including installation) up to a maximum award amount of $250,000. The program will target the State’s manufacturers within targeted industries that will purchase equipment that integrate advanced or innovative technologies, processes, and materials to improve the manufacturing of products. The program will also offer bonuses focused on certified woman, minority, veteran owned businesses (WMVB), opportunity zones, purchasing manufacturing equipment in New Jersey as well as bonuses for companies that has a collective bargaining agreement in place. NJ MVP is also committed to supporting small businesses by awarding manufacturers with under 100 Full Time Equivalents employees (FTE) higher award percentages. Applications will be accepted on a rolling basis and remain open until all funds are committed.
As a commitment and in support of the Authority’s Diversity, Equity, and Inclusion efforts, the NJ MVP – New Jersey Manufacturers Voucher Program supports projects that are in distressed areas and under-represented ownership groups. In particular, the NJ MVP will award bonuses to those applicants for each of the following areas:
Stackable 5% Bonuses Available for each of the following
- Opportunity Zone Eligible Census Tract (equipment located)
- Certified Woman, Minority, and Veteran Owned Businesses (WMVB)
- At least one Collective Bargaining Agreement in place
Stackable 10% Bonuses Available for the following
- Purchase equipment from a New Jersey Manufacturer. (Equipment must be manufactured and/or assembled in NJ)
Eligible Funding Uses:
Funding can only be used for the purchase and installation of (new and/or used) equipment used in the manufacturing process. The equipment must be located and installed at a New Jersey location. Eligible capital assets shall include any form of manufacturing equipment, technologically advanced equipment or production/operating systems, including but not limited to robotics, additive manufacturing, hardware or software for digital twinning, advanced sensor or control systems, IIoT (interconnected sensors, instruments, and other devices networked together with computers’ industrial applications) systems and related security. In addition, for profit and not-for-profit companies are eligible but home-based businesses are not eligible. The acquisition of eligible equipment as it relates to NJ MVP must executed at arm’s length.
ELIGIBILITY
To be eligible for the Program:
- Applicant company must be in Targeted Industry or equipment must meet Advanced Manufacturing definition (list and definitions are included in the attached Targeted Industries document)
- Company must obtain a Tax Clearance Certificate
- Equipment must be located and installed at a New Jersey location
- Applicant company must provide a Purchase Quote, Order Proforma, and / or Equipment Listing.
- Note: projects where a contract has been signed, a Purchase Order placed, or a deposit made in advance of submitting an application WILL NOT be considered for funding
- For-profit and not-for-profit companies are eligible, but home-based businesses are ineligible
- New and/or used equipment is eligible.
- Equipment must be used in the manufacturing process.
- Total aggregated project cost (equipment + installation) must be at least $25,000.00
- All contracts (including manufactures/supplier agreements) that are $2,000 or more and requires installation of equipment is subject to Prevailing Wage Law.
In addition to the eligibility parameters already stated above, the applicant must also be in substantial good standing with the New Jersey Department of Labor and Workforce Development (LWD) and NJ Department of Environmental Protection (DEP) at the time of approval to be eligible. A current tax clearance will need to be provided prior to closing / grant agreement to demonstrate the applicant is properly registered to do business in New Jersey and in substantial good standing with the NJ Division of Taxation.
AWARD SIZE AND DISTRIBUTION
- Grant awards will be 30% – 50% of eligible project cost (depending on stackable bonuses), with a minimum award of of $7,500 and maximum award amount capped at $250,000 per applicant.
- Companies and organizations may submit multiple project applications, so long as the aggregate amount awarded to any one company doesn’t exceed $250,000 over the life of the program and total aggregated project cost is at least $25,000.
- The company will be allowed 12 months for the delivery and installation of the equipment with two 6-month extensions before the funds are disbursed.
- One single award disbursement will be issued with proof of equipment delivery and installation is provided.
FEES
There is a standard application fee of $1,000 per application.
Additionally, if, in any tax period within the first 3 years of an executed grant agreement, the company decides to leave the state, the authority will impose a scaled recapture of the award based on the scale below:
- 100% recapture of funds if company moves out of state within 1 year of an executed agreement
- 60% recapture of funds if company moves out of state within 2 years of an executed agreement
- 30% recapture of funds if company moves out of state within 3 years of an executed agreement
