New Jersey’s Urban Enterprise Zones (UEZ) Program was created to foster an economic climate that revitalizes designated urban communities and stimulates their growth by encouraging businesses to develop and create private sector jobs through public and private investment. The program has 32 zones in 37 municipalities throughout the state.
The UEZ Program offers participating businesses many incentives that encourage business growth and stimulate local economies. Program details include:
- Sales tax revenues generated by UEZ businesses are dedicated for use within the zones for economic development projects.
- Businesses participating in the UEZ Program can charge half the standard sales tax rate on certain purchases.
- In addition, UEZ businesses may enjoy tax exemptions on certain purchases and manufacturers may qualify for sales tax exemption on their energy and utility consumption when they meet specified employment and other criteria.
- For each new permanent full-time employee hired, businesses may receive a one-time $1,500 tax credit.
- Employers may also benefit from subsidized unemployment insurance costs for certain employees who earn less than $4,500 per quarter.
- The UEZ Program allows a tax credit against the Corporate Business Tax up to eight percent of qualified investments within the zone. Also, businesses may be eligible for priority financial assistance.
