Newark Urban Enterprise Zone

Urban Enterprise Zone Incentives

• Sales tax reduction to customers. Qualified retail businesses may charge 50% of the mandated 7% NJ sales tax on certain “in person” purchases. Revenues generated from the 3.5% sales tax are maintained in a Zone Assistance Fund (ZAF) and are dedicated to use in the zone for certain economic development and/or public service improvement projects;
• Pay no or reduced state sales tax on tangible personal property, materials and equipment. Tangible personal property includes items such as office supplies, office or business equipment, office and store furnishings, trade fixtures, cash registers, etc;
• Pay no or reduced state sales tax on services. Services include items such as installing, maintaining or repairing tangible personal property used in business, maintaining, servicing or repairing real property used in business and advertising services;
• A one-time corporation tax credit of $1,500 for the full-time hiring of each disadvantaged Newark resident, i.e. those who have been unemployed or dependent upon public assistance for at least 90 days, or
• Corporation tax credit of $500 for hiring a non-disadvantaged Newark resident;
• Subsidized unemployment insurance costs, for certain new employees;
• An eligible firm may receive an incentive tax credit of 8% of investment in the Zone by an approved "in lieu" agreement;
• Priority for financial assistance from New Jersey Local Development Financing Fund (LDFF) and Job Training Program.
• Businesses involved in urban redevelopment may be eligible for low- and no-interest loans, loan guarantees, equity investments, and technical assistance. These services are available through the New Jersey Redevelopment Authority and the New Jersey Economic Development Authority
• Loans, loan guarantees, equity investments, and technical assistance may be available to finance investments in neighborhood-based redevelopment projects, small business lending, renovation, relocation, and/or real estate development in urban areas. These services are available through the New Jersey Redevelopment Authority and the New Jersey Economic Development Authority's Financing Assistance
• Possible State regulatory relief by Zone request;
• New Jersey may be able to work with you to leverage your resources to formulate redevelopment projects. This program is administered by the New Jersey Redevelopment Authority;

For more information, see our "Questions and Answers (Q & A)" section.

>>> Personal Property Tax Benefits >>>