NEW JERSEY MANUFACTURING VOUCHER PROGRAM PHASE 2
Based on significant interest in the Manufacturing Voucher Program, the NJEDA has already received applications exceeding the amount of funding available under this program. As a result, the NJEDA is no longer accepting new applications for this program.
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.
Please note: Applicants must be seeking assistance for a project they are actively contemplating but have yet to commit to. Projects where a contract has been signed, a Purchase Order placed, a deposit made in advance or previously purchased equipment prior to an Approved NJ MVP application, will not be eligible for this program.
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), businesses located in opportunity zone eligible census tracts, businesses with less than 50 Full Time Equivalent employees (FTE), as well as bonuses for companies that have a collective bargaining agreement in place. Companies with under 100 Full Time Equivalent employees (FTE) can receive larger reimbursements. Business.NJ.gov | MWBE, SBE, VOB and Other Certifications
Applications will be accepted on a rolling basis and remain open until all funds are committed.
PROGRAM DETAILS
New Jersey Manufacturing Voucher Program (NJ MVP) will provide reimbursement 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
- Equipment is installed in a location within an Opportunity Zone Eligible Census Tract
(Tool to check tract locations here) - Certified Woman, Minority, and Veteran Owned Businesses (WMVB)
- At least one Collective Bargaining Agreement in place
- Manufacturers with fifty (50) or less FTE’s
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 (Note: Certificates may be requested through the State of New Jersey’s online Premier Business Services (PBS) portal. Under the Tax & Revenue Center, select Tax Services, then select Business Incentive Tax Clearance).
- 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.
- Changes to the listed proposed equipment(s) reflected in an approved NJMVP Phase 2 application, such as adding or changing items, are not permissible.
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
- Reimbursement grant awards will be 30% – 50% of eligible project cost (depending on stackable bonuses), with a minimum award of $7,500 and maximum award amount capped at $250,000 per applicant.
- Companies and organizations may submit multiple equipment requests on a single application, so long as the aggregate awarded amount, to any one company, doesn’t exceed $250,000 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.
- Reimbursements will be made directly to the applicant.
- Only 1 reimbursement will be made. If an applicant is eligible for multiple pieces of equipment, they must have all equipment delivered and installed before they submit for reimbursement. An applicant does not have to move forward with the acquisition of all eligible pieces of equipment in their approval letter and may submit for reimbursement just for what they decided to move forward with.
- Grantees at the latest, must purchase approved equipment within thirty (30) days of the effective date of the Closing Agreement.
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
CLOSING AND REIMBURSEMENT
- Following submission and completion of payment, successful applicants are authorized to purchase the equipment specified in their proposal. This purchase must be finalized no later than thirty (30) days after the closing Grant Agreement takes effect.
- Grantees will have 12 months with two (2) 6-month extensions (grantee must apply for extension) to provide the NJEDA with proof of purchase, delivery, and installation of the solicited approved equipment.
- Reimbursements will be made directly to the applicant.
- Only 1 reimbursement will be made. If an applicant is eligible for multiple pieces of equipment, they must have all equipment delivered and installed before they submit for reimbursement. An applicant does not have to move forward with the acquisition of all eligible pieces of equipment in their approval letter and may submit for reimbursement just for what they decided to move forward with.
On an annual basis, and every year thereafter for the duration of the Voucher Compliance Term, you shall submit a NJ MVP Certification to Grantor, verifying that Equipment remains physically located in New Jersey, which shall be due no earlier than the thirty (30) days preceding the first anniversary of the Effective Date but no later than the first anniversary of the Effective Date. You may also be required to submit additional compliance information as needed pursuant to the Voucher Agreement.
If Grantee is entering into a lease for the Equipment, Grantee shall complete the portion of the NJ MVP Certification which states that the lease agreement is not in monetary or material default.
A Certificate of Liability showing proof of general liability insurance
Please provide a valid NJ Business Tax Clearance Certificate, no more than 180 days old. You can obtain one at https://www16.state.nj.us/NJ_PREMIER_EBIZ/jsp/home.jsp
LABOR COMPLIANCE
The following information provides additional resources around PUBLIC WORKS CONTRACTOR RESOURCES:
When is registration with NJ Department of Labor’s Public Works Contractor, the New Jersey Prevailing Wage Act, and Affirmative Action required?
- If the Project is expected to involve construction, reconstruction, demolition, custom fabrication, repair work, or maintenance work, including painting and decorating, with construction costs of $2,000 or more, using contractors such as Plumber, Electrician, or Carpenter or any other construction trades for the purpose of installing the equipment, the Project will be required to comply with the NJ Department of Labor’s Public Works Contractor Registration Act, the New Jersey Prevailing Wage Act, and Affirmative Action.
Compliance steps required during the hiring process of a contractor:
- Register: All contractors and subcontractors must be registered with the NJ Department of Labor. This applies to new contracts (awarded after April 1, 2020) requiring prevailing wage payments. Existing contracts are exempt.
- Prevailing Wage: Include the Authority’s Prevailing Wage Addendum in your construction contracts.
- Subcontractors: List only registered subcontractors in your bid proposals.
- Apprenticeship Programs: Participate in a registered apprenticeship program (effective May 1, 2019). Ensure your subcontracts also require this.
- Find Resources: Regulations, forms, and guidance documents are available at: www.njeda.com/affirmativeaction
All construction contracts awarded in New Jersey that require payment of prevailing wage must also provide proof of valid Construction Contractor Registration Certification (“CRC”).
- Avoid loss of incentives, fines and penalties for non-compliance.
- Ensure fair compensation for workers.
- By following these instructions, you can ensure your construction project, for the purpose of installing the equipment complies with New Jersey’s labor and affirmative action regulations.
CHECKLIST
New Jersey Manufacturing Voucher Program Disbursement Documentation Form
NJMVP requires that grantees submit supporting documentation of their eligible equipment as reflected in the Approval Letter to get cleared for disbursement. The following will be required once you have installed all approved equipment(s) and you are ready to provide proof of payment and installation.
The Disbursement Requisition Form will be provided to the applicant during the Closing Process.
What you will need to provide:
- NJ Manufacturing Voucher Program (NJMVP) Disbursement Requisition Form.
- Paid Invoice with detail to the equipment purchased.
- If applicable, Equipment Lease Agreement or Equipment Finance Agreement.
- Current Tax Clearance Certificate
- ACH bank information (Account # and Routing #):
- Voided Check
- Bank statement with name, account, and Routing # reflected
- Labor Compliance – AA/PW Requirements:
- Contractor Release Letter showing project is deemed in full compliance with AA/PW requirements, or
- No Construction Acknowledgment Letter
- Proof of installation:
- Certification that the equipment has been installed in the NJ location
- Packing Slip showing delivery address of equipment
PROGRAM GUIDE
QUESTIONS
For more information or to ask a specific question, please send an email to NJMVP@NJEDA.GOV and a team member will reach out to you.