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Personal Protective Equipment (PPE) Manufacturing Tax Credit (NJ Economic Recovery Act/ NJEDA)


The PPE Manufacturing Tax Credit makes $10 million in investment tax credits per year available to businesses that invest in the production of PPE during the 2020, 2021, and 2022 tax years. The program supports investment in PPE manufacturing facilities and equipment to increase the availability of critical public healthcare products and create manufacturing jobs.


To receive tax credits through the PPE Manufacturing Tax Credit Program, a project must:

  • Manufacture PPE, such as coveralls, face shields, gloves, gowns, masks, respirators, safeguard equipment, and other equipment designed to protect the wearer from the spread of infection or illness

  • Create a minimum number of new jobs.

  • Meet a minimum investment threshold for new construction or the improvement or fit-out of existing facilities.

  • Be located in an approved redevelopment or rehabilitation area, Smart Growth Area, or a facility engaged in a research collaboration or an apprenticeship or pre-apprenticeship program with a New Jersey educational institution or in large, long-vacant building.

Award Size:

Projects can receive a base tax credit of $10,000 per new job created, up to an annual program cap of $10 million. Individual projects are subject to an annual cap of $500,000. Bonuses are available for projects that meet additional policy goals. PPE Manufacturing Tax Credits that exceed the amount that a taxpayer owes shall be treated as a refundable overpayment. A PPE Manufacturing Tax Credit for new or retained jobs will not apply if the taxpayer is receiving a tax credit incentive award for the same jobs under the Emerge Program.

Fiscal & Resident Protections:

Tax credits through the PPE Manufacturing Tax Credit Program are only available for full-time jobs offering at least 35 hours per week, a wage rate of $15 per hour or more, and approved employee health benefits. Employers must also commit to retaining the incented jobs for a period of at least five years.

The full statutory text of the program can be found in sections 106-107 of the Economic Recovery Act of 2020. 

Additional Information:

The PPE Manufacturing Tax Credit Program provides bonus tax credits for facilities located in the following counties:

  • Atlantic,

  • Burlington,

  • Cape May,

  • Cumberland,

  • Gloucester,

  • Ocean, and

  • Salem.

Bonus per-job tax credits are also available for jobs created at a qualified facility, that meet the following criteria:

  • Located in previously vacant building: $1,000 per job

  • Has approved research collaboration: $1,500 per job

Has apprenticeship program: $1,000 per job

About the Economic Recovery Act:

Governor Phil Murphy signed the New Jersey Economic Recovery Act of 2020 (ERA) into law on January 7, 2021. The ERA creates a package of tax incentive, financing, and grant programs that will address the ongoing economic impacts of the COVID-19 pandemic and build a stronger, fairer New Jersey economy. Programs outlined in the law include:

  • Tax credits to incentivize job creation and capital investment;

  • Investment tools to support and strengthen New Jersey’s innovation economy;

  • Tax credits to strengthen New Jersey’s communities including revitalization of brownfields and preservation of historic properties;

  • Financial resources for small businesses, including those impacted by the COVID-19 pandemic;

  • Support for new supermarkets and healthy food retailers in food desert communities;

  • Additional tax credits for film and digital media.


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