Clean Energy

The New Jersey sales and use tax exemption for manufacturers enables machinery, apparatuses, or equipment to be purchased without paying New Jersey sales and use tax. The equipment must be used primarily in the production of tangible personal property by manufacturers, processors, assemblers, or refineries.

Companies operating in Foreign Trade Zones (FTZ) pay no duties on merchandise imported for manufacturing or assembling when the final product is exported outside of the United States. Duties are only paid when these products leave the zone for the domestic market.

If a business is located within the 32 Urban Enterprise Designated Zones (UEZ) in New Jersey, there are a variety of benefits including a lower sales and use tax rate, tax-free purchases on certain items, subsidized unemployment insurance, and energy sales tax exemptions for qualified manufacturing firms.

The New Jersey Angel Investor Tax Credit Program establishes tax credits against corporation business or gross income taxes based on qualified investment in New Jersey’s emerging technology businesses to stimulate investment. The credits apply to 20% of the qualified investment made in an NJ emerging technology business, with a potential increase to 25% if the business is certified M/WBE or located in an Opportunity Zone or New Market Tax Credit Census Track.

The New Jersey Innovation Evergreen Fund Program facilitates private sector engagement to raise and invest capital in qualified New Jersey-based companies and promote strategic collaboration in the state’s innovation economy. Proposed Qualified Businesses may access up to $5,000,000 of program investment capital for equity investments, or $6,250,000 for State-certified women or minority businesses, New Jersey university spin-offs, or businesses that utilize intellectual property developed at a New Jersey university that is core to its business model.

The Net Operating Loss (NOL) Program supports companies in New Jersey with a net operating loss carryover and/or R&D tax credits and have no positive net operating income for the last two years.

The New Jersey Manufacturing Voucher Program assists manufacturers that intend to purchase equipment that integrates advanced or innovative technologies, processes, and materials. The program provides grants sized at 30% to 50% of the cost of eligible equipment.

The Catalyst R&D Voucher program is for New Jersey-based early-stage company efforts to accelerate the development and innovation of technologies to transform discoveries from the research stage into commercially viable technologies, leading to industry and investor interest. Eligible applicants can apply for vouchers up to $40,000 to help offset the cost of leveraging R&D resources, facilities, and equipment at the state’s academic universities and colleges, and federal and non-profit laboratories to advance their technology development.

The Catalyst Seed R&D Grant Program helps New Jersey-based early-stage innovation-based companies accelerate the development of technologies to transform discoveries from the research stage into commercially viable products and services. Applicants developing life sciences therapeutics can apply for grants of up to $150,000, all other Applicants are eligible to apply for grants of up to $75,000.

The Maternal and Infant R&D Grant Program engages early-stage innovation-based companies in New Jersey and helps to accelerate the research and development of technologies, transforming discoveries from the research stage into commercially viable products and services. Eligible applicants can apply for vouchers up to $75,000 to support innovation in developing technology, therapeutics, and other solutions to address maternal and infant health challenges in New Jersey.

The Workforce 55+ On-the-Job Experience (OJE) Program supports private, non-profit employers who offer eligible job seekers the opportunity to gain work experience and may do so at no cost. OJE participants’ salary is covered for four weeks by a federal grant, providing employers with an opportunity to observe and train the employee before making a permanent hire.

The On-the-Job Training (OJT) Program is eligible to all New Jersey-based companies who hire full-time positions. Employers are reimbursed 50% of new employee’s wages for a period of up to 26 weeks in exchange for providing training in a specialized skill set.

The Federal Bonding Program is a unique job placement tool that provides employers with insurance for hiring jobseekers who have poor credit histories, are recovering from substance abuse, are on public assistance, or are justice-involved.

Upskill grants are block grants that are available to all New Jersey-based companies to help defray the cost of training of existing employees.

The Opportunity Partnership for Business is available to all New Jersey-based businesses to support employers design the training program they need to fill a skills gap in their industry.

The Registered Apprenticeship is an industry-driven training model that combines paid on-the-job learning with classroom instruction. The employer can develop training that aligns cohesively with their business needs.

Offshore Wind Tax Credits are available to businesses making a capital investment in a qualified wind energy facility in New Jersey and will be employing at least 150 new, full-time employees.

The New Jersey SmartStart Buildings Program can provide a range of support to yield substantial energy savings for new and existing buildings. Incentives are available for any size project, which can offset some of the added cost of purchasing qualifying equipment.