Sweeney Plan 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, Senate President Steve Sweeney is proposing legislation to utilize tax credits to promote their production in New Jersey.

“The shortages of masks, hospital gowns, gloves and other Personal 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 also 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, which was introduced Monday, 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.

The bill establishes the credit at $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.