Urban Enterprise Zone Incentives

• Qualified retailers may charge 50 percent of New Jersey sales tax on "in person" purchases;
• Sales tax exemptions for materials and for tangible personal property;
• A one-time corporation tax credit of either $1,500 or $500 for the full-time hiring of residents of a city where a Zone is located who have been unemployed or dependent upon public assistance for at least 90 days, or
• Corporation tax credit of $1,500 or $500 for hiring resident within the zone, within another zone or within a qualifying municipality;
• Subsidized unemployment insurance costs, for certain new employees;
• Priority for financial assistance from New Jersey Local Development Financing Fund (LDFF) and Job Training Program.

The East Orange Urban Enterprise Zone (EOUEZ) program supports job creation in the City and helps finance physical improvements to the City’s business districts. The program also provides support services to the business districts, such as improved community policing and technical support to help improve the general business climate. Finally, the program helps leverage additional public and private investments to these areas.

A qualified business may be entitled to an exemption from sales and use tax on the purchase of tangible personal property (except motor vehicles) and sales of services for the exclusive use or consumption of such business within the Zone.

Tangible personal property include items such as office supplies, office or business equipment, office and store furnishings, trade fixtures, cash registers, etc. Services include items such as installing, maintaining or repairing tangible personal property used in business (other than a motor vehicle); maintaining, servicing or repairing real property used in business and advertising services. The qualifying business must provide the vendor with an exemption certificate.

Approximately two or three weeks after receiving a certification notice from the Dept. of Commerce & Economic Development, the Urban Enterprise Zone business will receive UZ5 forms from the Division of Taxation. Present a copy of this form to vendors in lieu of paying sales tax.

RETAIL ITEMS NOT ELIGIBLE FOR 50% REDUCTION:

• Sales of Services
• Sales of Motor Vehicles
• Sales of foods, meals and beverages
• Mail order sales
• Telephone and electronically communicated sales
• Sales made from location outside of the U.E.Z.
• Charges for room occupancy/rental and admission/amusement.
• Sales of machinery apparatus or equipment or other tangible personal property not qualified for exemption from sales tax and purchased for use in manufacturing, processing, assembling, or refining tangible personal property.