Gov. Phil Murphy highlighted another $20 million included in the recently signed Fiscal Year 2024 budget for the New Jersey Manufacturing Voucher Program (MVP) July 13, boosting the program’s total funding to $53 million.
MVP was launched last year as a pilot initiative by the New Jersey Economic Development Authority (NJEDA) to provide manufacturers with vouchers to purchase equipment needed to improve operations and upgrade their businesses. The program was initially funded with $20 million. In March, the NJEDA board approved an increase of the program’s available funding to $33.75 million to meet robust application demand.
Through MVP, vouchers valued at 30% to 50% of the cost of eligible equipment, including installation and up to a maximum award amount of $250,000, are offered to manufacturers.
The effort focuses on both for-profit and nonprofit operations within targeted industries that will use the equipment to integrate innovation technologies, processes, and materials to improve business efficiency and productivity. The program offers stackable bonuses for certified woman-, minority-, or veteran-owned businesses. Those incentives are also available to businesses in Opportunity Zones, businesses purchasing equipment within New Jersey, manufacturers that have a collective bargaining agreement, and small companies with less than 100 full-time equivalent employees.
Since MVP’s launch, the NJEDA has awarded 189 vouchers across the Garden State totaling $23.4 million, while continuing to process and approve applications daily.
The NJEDA says this additional funding will enable it to fulfill those applications submitted after the program was oversubscribed, with a launch of Phase II set to be announced in the coming months.
“Throughout Gov. Murphy’s tenure, New Jersey has prioritized strategies that support and bolster our manufacturing sector by ensuring companies have the resources and capital needed to continue making products used by consumers domestically and abroad,” said NJEDA Chief Executive Officer Tim Sullivan. “I thank Gov. Murphy and the Legislature for passing a budget that will further enable us to meet the needs of additional New Jersey manufacturing companies, which in turn will grow our economy, and strengthen our supply chain.”
In a press release, Murphy said that New Jersey’s manufacturers are critical to our economy and the nation’s supply chain.
“The Manufacturing Voucher Program is a proven success, and this additional funding will help even more businesses modernize and become more efficient and profitable,” said Murphy.
In a statement to NJBIZ, Peter Connolly, the newly minted CEO of the New Jersey Manufacturing Extension Program, said that seeing the state double down on its investment into manufacturing is fantastic. According to him, MVP has already helped a number of manufacturers secure vouchers to offset the cost of purchasing new equipment.
“With Gov. Murphy’s commitment of another $20 million to our state’s manufacturers, we will be able to watch as more small-, medium-sized manufacturing businesses receive this critical support,” Connolly told NJBIZ. “We want to thank the governor and all the manufacturing allies in the New Jersey Legislature for making this possible. NJMEP has been providing ‘MADE in New Jersey’ manufacturers with access to affordable training and consulting services for nearly 30 years, but this level of support from the state is unprecedented.
“We’re thrilled to continue supporting this vital industry throughout this manufacturing renaissance we’re currently experiencing,” Connolly continued.