NJ A4116

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 for five consecutive years.

Contributions to the account are fully deductible against income (up to $100,000 per year), and earnings on deposits are tax-deferred while remaining in the account.

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

Non-qualified withdrawals and any funds remaining after the five-year period are taxed at full rates, with earnings included as taxable income.

Requires the Department of Treasury to establish criteria for qualifying manufacturers, who must be in good standing on state tax obligations and hold only one account.