What is the Urban Enterprise Zone Program and how can my business participate?
Recent Regulations and Resources
Urban Enterprise Zone Program
New Jersey's Urban Enterprise (UEZ) Program, enacted in 1983, is administered by the NJ Urban Enterprise Zone Authority which is in but not of the New Jersey Department of Community Affairs (NJDCA). The UEZ program fosters an economic climate to help revitalize designated urban communities and stimulate their growth by encouraging businesses to develop, grow, and create private sector jobs through public and private investment.
Business incentives are provided to certified zone businesses through employment and investment tax credits, reduced sales tax collections on certain retail sales, and sale tax exemptions on qualified business purchases. The annual cost to the State for this program has averaged $220 million dollars per year over the last several years. “Public Investment” is the reduction in the retail sales tax rate (3.5%), plus effect of the sales tax exemptions on purchases. Data is self-reported by firms. There are 32 zones encompassing 37 municipalities.
• Reduced Sales Tax – 3.3125%
• Tax Free Purchases on certain items such as capital equipment, machinery, facility expansion, and upgrades.
• Financial Assistance from agencies such as NJEDA
• Subsidized unemployment insurance costs for employees who earn less than $4,500 per quarter.
• Energy Sales Tax Exemption for qualified manufacturing firms with at least 250 employees, 50% of whom are working in manufacturing.
• Tax Credit Options - Businesses may elect one of the following:
o Up to $1,500 for new permanent full-time employees hired
o Up to 8% Corporate Business Tax credit on qualified investments.
Find help enrolling in the Program: Visit the UEZ Website at www.nj.gov/dca/affiliates/uez, or call 877-913-6837 or 609-292-1912.
Local zone support: See this link for a list of UEZ coordinators and contact information by area.