New Jersey’s Urban Enterprise Zone

Borough officials attend the grand opening of Dunkin Donuts on Chestnut Street.

Enacted in 1983, the Urban Enterprise Zone (UEZ) program fosters economic revitalization in designated urban communities by offering incentives that encourage businesses to create private sector jobs through public and private investment.

Approximately 6,800 certified UEZ businesses benefit from a number of tax and other financial incentives, including:

 

  • 50% sales tax reduction on most purchases, reducing the tax rate to a current level of 5%.

  • Tax exemptions on certain purchases including capital equipment acquired and investments made to build a new, expanded or upgraded facility.

  • Electricity and natural gas sales tax exemption by manufacturing firms with at least 250 employees, over 50% of whom are in a manufacturing process.

  • Annually, either a one-time $1,500 tax credit for each new permanent full-time employee hired; or alternatively, a tax credit against the Corporate Business Tax up to 8% of qualified investments.

  • Priority financial assistance from state agencies.

  • Subsidized unemployment insurance costs for certain employees earning less than $4,500 per quarter.

  • Portions of Roselle are exempt, offering shoppers the advantage of buying at the reduced 3.5 % sales tax.

Resource: Choose New Jersey
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