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Sweeney-Greenstein Bill Would Use Tax Credits to Promote Production of Personal Protective Equipment in NJ

Trenton – To help ensure immediate access to the personal protection equipment that is critically needed by medical workers and others in any infectious disease outbreak, the Senate today approved legislation authored by Senate President Steve Sweeney and Senator Linda Greenstein to utilize tax credits to promote the production of the safety equipment in New Jersey.

“The shortages of masks, hospital gowns, gloves and other protective equipment we experienced last spring when states were competing to find scarce supplies makes it clear that New Jersey needs to have its own manufacturing capacity for the most critical healthcare supplies,” said Senator Sweeney (D-Gloucester/Salem/Cumberland). “This legislation would encourage New Jersey manufacturers to invest in the people and equipment needed to produce PPE here.”

The three-year incentive program would generate economic benefits by supporting a job-producing sector of the health care industry, providing enough time for businesses to get up and running.

The legislation, S-3015, would offer corporation business tax and gross income tax credits to taxpayers and businesses that create jobs manufacturing PPE in New Jersey, including coveralls, face shields, gloves, gowns, masks, respirators, and other equipment designed to protect the wearer from the spread of infection or illness.

“We must ensure that our state is well-prepared to protect our healthcare professionals and all of our citizens when faced with a public health crisis. The COVID pandemic taught us that we cannot always rely on the federal government’s support and underscores the need for ‘Made in New Jersey’ PPE,” said Senator Greenstein (D-Middlesex/Mercer). “Incentivizing our manufacturers with tax credits to commit their operations to produce PPE will not only bolster their operations, but will make certain that we meet the needs of our state during any public health emergency.”

“New Jersey has been very forward thinking during the COVID pandemic, and that includes our governor, our legislators, and the industry itself,” said John Kennedy, Executive Director of the New Jersey Manufacturing Extension Program. “Almost 300 manufacturers have retooled or expanded capacities for PPE. This bill authored by Senate President Sweeney and Senator Greenstein is a solid next step in providing earned taxed credits to our New Jersey-based companies that can and did stand up during this crisis in support of our front line medical workers.”

The bill establishes a credit of $10,000 for the creation of each new job, through 2022. The jobs would have to be full-time positions with health insurance and with wages subject to income tax withholding.

The maximum yearly credit for any individual taxpayer would be $500,000, and the overall annual cap on the statewide program would be $10 million. The Department of Health would provide consultation on the specific requirements for the products.

The Senate vote was 39-0.