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Division of Taxation

Urban Enterprise Zones (UEZs) Overview

Urban Enterprise Zones (UEZs) exist to stimulate economic activity in distressed areas. As part of these efforts, the State provides businesses within UEZs with several forms of tax relief incentives. The benefits available to qualified businesses in a UEZ include:

  • 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%;
  • 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.

As of May 30, 2018, there are 32 UEZs located in 37 cities. As of this date, five expired UEZs were reinstated in Bridgeton, Camden, Newark, Plainfield, and Trenton.The law that reinstated the expired UEZs also extended the expiration date of 12 other UEZs
The Urban Enterprise Zone Authority determines which businesses qualify for UEZ tax exemptions and other benefits provided under the program. To qualify, a business must apply online using the UEZ Business Certification System. The system can be accessed through the State’s Premier Business Services website. Please refer to step-by-step instructions provided by the New Jersey Department of Community Affairs (DCA) 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. 

Common Issues and Questions

Last Updated: Tuesday, 03/31/20