Programs and Incentives

Businesses participating in the UEZ Program can access a number of financial programs designed to stimulate job creation and business growth.

General Incentives:
  • Qualified retail businesses may charge 50 percent of the state’s sales tax on certain “in person” purchases.
  • Revenue generated from the 50 percent of the State’s sales tax rate is maintained in a Zone Assistance Fund (ZAF) and is dedicated to use within the zone for certain economic development and/or public service improvement projects.
  • Sales tax refund for purchase of certain materials and tangible personal property. Small UEZ Businesses, with less than $1 million in annual gross receipts, can purchase certain goods and materials sales tax free.
  • One-time corporation tax credit of $1,500 for each new, full-time permanent employee who is a resident of a municipality in which a zone is located and who had been unemployed for at least 90 days or dependent upon public assistance.
  • Subsidized unemployment insurance costs for certain new employees with gross salaries of less that $4,500 per quarter.
  • Tax credit against the Corporation Business Tax of 8 percent of Investment in the zone by an approved “In Lieu” agreement with the Urban Enterprise Zone Authority and Municipality.
  • Priority financial assistance for loans, grants and job training.
  • Energy and utility service sales tax exemption on consumption within an enterprise zone by manufacturing firms with more than 250 employees, when more than 50 percent are in a manufacturing process.
  • Business Retention and Relocation Assistance Grant (“BRRAG”) for relocation and retention of at least 250 non-retail jobs where the grant is a material factor. Special limitations/bonuses for UEZs.
  • Business Employment Incentive Program (“BEIP”) applicants may be eligible for a grant award of up to 50 percent of the state income taxes withheld for new employees hired and may increase up to 80 percent if “Smart Growth.”

For details on the UEZ Program and other Commerce incentives call (609) 777-0885 or in-state toll free 86-NJFIRST9.