NJ S1217

Creates a manufacturing reinvestment account program allowing qualified manufacturers with 50 or fewer employees to deposit up to $100,000 annually into a special interest-bearing account held at a New Jersey financial institution.

Contributions to the account are fully deductible against gross income (for individuals) or entire net income (for corporations), with earnings tax-deferred until withdrawal.

Withdrawals used for qualified reinvestment expenditures—manufacturing machinery, equipment, or New Jersey workforce training—receive a 50% reduction on the tax rate applied to account earnings.

Tax benefits apply for five consecutive years from the first deposit; any remaining funds after year five are automatically deemed distributed and taxed at full rates.

Department of Treasury will establish criteria and guidelines for qualifying manufacturers, who must be in good standing with State tax responsibilities.