NJEDA awards first Next NJ Manufacturing tax credit

The basics:

• NJEDA approves 1st award under Next NJ Manufacturing Program
• Starman New Photonics plans $150M Warren investment
• Project will manufacture AI data center optical transceivers
• Expected to create 250 jobs and receive $37.5M tax credit

The New Jersey Economic Development Authority approved the first tax credit award under the Next New Jersey Manufacturing Program June 18.

The incentive went to Starman New Photonics LLC. The company’s planned $150 million investment in Warren, Somerset County, includes the renovation of a 100,000-square-foot facility. The space will manufacture optical transceivers used in AI data centers to connect GPUs and support high-speed computing infrastructure. The project is expected to create 250 jobs.

The company will receive $37.5 million in tax credits, structured as $7.5 million per year over five years, in exchange for a 10-year commitment to operate in New Jersey.

Making it in NJ

“New Jersey’s manufacturing industry is critical to our economy, helping drive investment and create good-paying jobs,” said NJEDA Chief Executive Officer Evan Weiss. “Starman New Photonics is a perfect blend of a long-standing industry – manufacturing – and a new one – AI – both of which are producing impactful economic benefits for the state and its residents.”

Starman New Photonics CEO Charles Tebele said his company is proud to partner with the state to onshore optical transceiver manufacturing. He described it as a critical component of the AI infrastructure economy.

“With the Department of Defense moving to prohibit the procurement of optical transceivers from certain foreign producers, domestic manufacturing has become increasingly imperative,” said Tebele. “We are grateful to the team at NJEDA and Gov. [Mikie] Sherrill for recognizing this opportunity and for their support in helping make this project possible.

With its strong infrastructure, leading universities, and highly skilled workforce, New Jersey provides an exceptional foundation for this investment and for our long-term growth.
—Charles Tebele, CEO, Starman New Photonics

“With its strong infrastructure, leading universities, and highly skilled workforce, New Jersey provides an exceptional foundation for this investment and for our long-term growth.”

As NJBIZ has previously reported, the Next New Jersey Manufacturing Program is a bipartisan, $500 million state tax credit initiative. Then-Gov. Phil Murphy signed the initiative into law in 2025 to incentivize manufacturing investment across New Jersey.

‘A tremendous win’

Sponsors of the legislation applauded the award.

“This award demonstrates exactly what the Next New Jersey Manufacturing Program was designed to accomplish,” said Sen. Linda Greenstein, D-14th District, co-chair of the Legislative Manufacturing Caucus. “Starman New Photonics’ decision to invest in Somerset County is a tremendous win for our manufacturing sector and our state as a whole.

“As demand for AI infrastructure continues to grow, it is critical that New Jersey remains at the forefront of developing emerging technologies while expanding our capacity to manufacture them at scale.”

“Manufacturing built New Jersey’s economy, and investments like this are exactly what we need to keep it strong for future generations,” said Sen. Michael Testa, R-1st District, co-chair of the Legislative Manufacturing Caucus. “At a time when too much of our manufacturing base and critical technology production has moved overseas, Starman New Photonics’ decision to invest … in New Jersey is a major win for our workers, our economy, and our national security.”

“Today’s announcement shows that the Next New Jersey Manufacturing Program is already working as intended, creating opportunities for New Jersey residents and strengthening our position as a state where businesses choose to invest, innovate, and grow,” said Assembly Majority Leader Lou Greenwald, D-6th District. “By attracting innovative companies and helping them expand here, we are ensuring that New Jersey continues to lead in the industries that will define our future for years to come.”

Testa added, “It’s a reminder that when government creates the right environment for investment and innovation, businesses will choose to grow, hire, and manufacture right here in the Garden State.”