Financing and Incentives

Overview

Newark is one of 37 municipalities throughout the state of New Jersey that has been designated a New Jersey Urban Enterprise Zone. Enacted in 1983 and administered by the NJ Commerce Commission’s Office of Urban Programs, the UEZ Program supports nearly 150,000 full-time jobs and has attracted more than $24 billion in private investment throughout the State. There are almost 7,000 businesses of all sizes and types participating and benefiting from the advantages of the UEZ Program.

The UEZ Program offers participating businesses many tax and financial incentives that encourage business growth and stimulate local economies:

• 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. UEZ manufacturers with at least 250 employees, over 50% of who are involved in a manufacturing process, may apply for sales tax exemption on energy and utility services (natural gas and electricity).

QUICK LINKS
New Jersey UEZ Program