jest.config.js

const nextJest = require('next/jest')

const createJestConfig = nextJest({
  // Provide the path to your Next.js app to load next.config.js and .env files in your test environment
  dir: './',
})

// Add any custom config to be passed to Jest
const customJestConfig = {
  setupFilesAfterEnv: ['<rootDir>/jest.setup.js'],
  testEnvironment: 'jest-environment-jsdom',
  moduleNameMapper: {
    '^@/(.*)$': '<rootDir>/$1',
  },
  testMatch: [
    '**/__tests__/**/*.[jt]s?(x)',
    '**/?(*.)+(spec|test).[jt]s?(x)',
  ],
  collectCoverageFrom: [
    'app/**/*.{js,jsx,ts,tsx}',
    'components/**/*.{js,jsx,ts,tsx}',
    'lib/**/*.{js,jsx,ts,tsx}',
    '!**/*.d.ts',
    '!**/node_modules/**',
    '!**/.next/**',
    '!**/coverage/**',
  ],
  // Coverage thresholds - currently set low for initial setup
  // Increase these as you add more tests
  // Set to null to disable threshold enforcement (coverage still tracked)
  coverageThreshold: {
    global: {
      branches: 0,
      functions: 0,
      lines: 0,
      statements: 0,
    },
  },
}

// createJestConfig is exported this way to ensure that next/jest can load the Next.js config which is async
module.exports = createJestConfig(customJestConfig)