The Bridgewater-based company plans more than $240 million in investment and over 330 new jobs, with tax credits contingent on meeting program requirements.
PISCATAWAY, NJ – The New Jersey Economic Development Authority has approved approximately $60 million in tax credits for Amneal Pharmaceuticals to expand manufacturing in Piscataway, supporting a project the company plans to develop with more than $240 million in eligible investment and over 330 new full-time jobs.
The authority announced the award Oct. 26. The expansion would increase production capacity for transdermal patches, biosimilars and pharmaceutical injectables, including products within Amneal’s affordable-medicines business.
The award comes through the Next New Jersey Manufacturing Program, which ties tax incentives to capital investment, new employment and continuing compliance. Approval establishes an incentive for a planned project; the company must subsequently certify that it has met the applicable requirements before receiving credits.
Amneal is headquartered in Bridgewater and was founded in Paterson in 2002 by brothers Chirag and Chintu Patel. The authority said the company’s planned expansion includes more than $240 million in eligible capital investment over three years.
“New Jersey is where Amneal began, and it remains central to our growth and our commitment to patients. We are proud to make a significant, long-term investment in domestic pharmaceutical manufacturing, expanding our capacity to produce complex medicines, create high-quality jobs, and strength the America’s medicine supply,” said Amneal Co-CEOs Chirag Patel and Chintu Patel. “Our employees’ expertise and dedication make this growth possible. We thank Governor Sherrill, the NJEDA, and our state and local partners for their support and shared commitment to New Jersey’s leadership in pharmaceutical manufacturing. Ultimately, this investment is about ensuring patients have reliable access to the affordable and innovative medicines they need, while building the next generation of American pharmaceutical manufacturing.”
Real Estate NJ reported Oct. 28 that the project would renovate eight buildings totaling more than 819,000 square feet, create 337 jobs and reach completion by late 2029. The publication put the award at about $60.6 million, citing the authority. NJEDA’s public announcement used the broader figures of approximately $60 million and more than 330 jobs.
How the tax-credit program works
Under NJEDA’s published program requirements, an eligible project must involve at least $10 million in capital investment and create at least 20 new full-time jobs. More than half of the qualified facility’s activity must involve manufacturing.
The base award is calculated using the lowest of three amounts: 0.1% of eligible investment multiplied by the number of new jobs; 25% of eligible investment; or $150 million. The program separately provides qualifying bonuses.
Employment requirements extend beyond the number of jobs. The median salary for full-time jobs at the facility must reach at least 120% of the county median for manufacturing employees. Participating businesses must also establish an approved relationship with a New Jersey educational, training or workforce organization.
The program requires environmental and sustainability compliance, along with prevailing wages for covered construction and building-services work. These requirements govern eligibility for the incentive; they do not establish the salary of each individual Amneal position.
“We are thrilled that Amneal is investing in our state and continuing to expand its operations in New Jersey. New Jersey is open for business. Through our targeted tax credit program and our ‘Save You Time and Money’ agenda aimed at business friendliness, we are ensuring that businesses can plant their roots and grow in the Garden State,” said Governor Sherrill. “By strengthening our pharmaceutical manufacturing sector, we can support good-paying jobs and solidify New Jersey’s position as a national leader in bringing innovative treatments from the lab to patients.”
Credits depend on the project’s performance
NJEDA’s program guidance gives approved businesses up to three years to certify investment, new hires and other requirements, with the possibility of two six-month extensions. Once the authority accepts the completion certification, credits are issued annually for five years within a 10-year commitment to New Jersey.
The credits are transferable. The guidance also provides for reductions, forfeiture or recovery of credits when a business fails to meet applicable requirements, depending on the circumstances and timing of the failure.
Annual reporting allows the authority to examine employment, wages and other compliance obligations after certification. The program distinguishes new jobs from existing positions and excludes independent contractors and consultants from its qualifying full-time employee count.
The Oct. 22 board agenda identifies Amneal’s Piscataway application for consideration under the manufacturing program. The authority’s subsequent announcement confirms the approval. The projected investment and hiring remain commitments to be carried out and verified through that process.