Legislation introduced this week in Trenton would provide $500 million in tax credits to incentivize in-state manufacturing.

The measure would establish the Next New Jersey Manufacturing Program. New Jersey Legislative Manufacturing Caucus co-chairs Sen. Michael Testa, R-1st District, and Sen. Linda Greenstein, D-14th District, sponsored the bipartisan bill.

In his Budget Address in February, Gov. Phil Murphy spoke about the initiative. The governor hopes the bill will pass alongside his fiscal year 2026 spending plan.

“And with our budget, we are going to apply this same strategy — of diversifying our state’s economy — to super-charging our leadership in advanced manufacturing,” said Murphy.

“In pursuit of this goal, I look forward to working with our bipartisan legislative partners — in particular, Sens. Linda Greenstein and Michael Testa — to enact a new tax credit that will incent companies around the globe, especially those facing the risk of new tariffs, to manufacture next-generation products — like cutting-edge pharmaceuticals or renewable energy components, like fuel cells — right here in the Garden State.”

‘Landmark legislation‘

And the measure, Senate Bill 4407, would do just that.

In a press release, Testa said manufacturing has long been the backbone of New Jersey’s economy.

“And it’s time we reaffirm our commitment to this vital sector,” said Testa. “The ‘Next New Jersey Manufacturing Program’ is designed to foster innovation, attract new investments, and create quality careers for our residents. By providing targeted incentives, we’re not only supporting existing manufacturers but also encouraging entrepreneurs to set roots in the Garden State.”

“This is a landmark legislation that will drive major investments in New Jersey’s manufacturing sector,” said Greenstein. “With the generous tax incentives included, the ‘Next New Jersey’ program will create high-quality jobs and solidify our state’s status as a leader in clean energy manufacturing.”

“This initiative represents a strategic step toward revitalizing our manufacturing industry and ensuring its growth for generations to come,” said Testa.

Greenstein added, “I am proud to sponsor this bill and will continue to push New Jersey toward a more economically prosperous and sustainable future.”