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Urban Enterprise Zone
An Urban Enterprise Zone (UEZ) is a distressed area within a New Jersey municipality or group of municipalities that offers business and customer benefits to help stimulate local economic activity. The State provides qualified businesses within UEZs with several forms of tax relief incentives:
The right to purchase items (except motor vehicles and energy) and most services (except telecommunications and utility services) without paying Sales Tax;
Corporation Business Tax credits for certain businesses hiring new employees;
The right for certified sellers to apply a partial Sales Tax exemption to most taxable sales of tangible personal property that occur in the UEZ. The exemption allows businesses to charge half the State Sales Tax rate on exempt sales. The current Sales Tax rate in UEZs is 3.3125%;
Loans, grants, and assistance is provided to qualified businesses from the distribution of Sales Tax collected (UEZ Assistance Fund);
Unemployment insurance tax benefits; and
A Sales and Use Tax exemption for the purchase of natural gas and electricity used by a qualified UEZ manufacturer that meets specific eligibility requirements.
Customers benefit by paying half the normal Sales Tax rate on many purchases at a UEZ Business (current UEZ Sales Tax rate is 3.3125%).
The Department of Community Affairs (DCA) administers the UEZ program. The Urban Enterprise Zone Authority determines which businesses qualify for UEZ tax exemptions and other benefits provided under the program. A business must apply online using the UEZ Business Certification System with Premier Business Services. See the DCA’s step-by-step instructions for assistance with the registration process.
Once certified as a qualified business, the business must submit an annual report and apply for recertification every three years.
UEZ businesses must file the UEZ Sales and Use Tax return, UZ-50, monthly, by the 20th day of the following month. If the due date falls on a weekend or holiday, returns are due the following business day.
Applicable Laws and Rules
P.L. 2021, Chapter 197, N.J.S.A. 52:27H-60 et seq., N.J.S.A. 52:27H-79, N.J.S.A. 52:27H-80, P.L. 2005 c. 374,
Official Site of The State of New Jersey