The Jersey City Urban Enterprise Zone Program
New Jersey has changed significantly over the last twenty five (25) years especially when it comes to doing business. There was a time when New Jerseyans worked, shopped, and lived in the same neighborhood thus creating strong communities and a sound local economy. However, the persistence of sprawl, office parks, malls, and “Big Box” retail development has literally driven New Jerseyans away from traditional neighborhoods and shopping districts. If it were not for the State of New Jersey Urban Enterprise Zone Program (UEZ) it is foreseeable that some of the State's older urban community structures would collapse and the face of New Jersey would be scared with urban decay.
Recognizing the financial challenges New Jersey faced in 1983, our elected officials in State government had the vision to establish the UEZ. This program was created to revitalize the State’s most distressed urban communities through the creation of private-sector jobs and public/private investment in targeted areas within these communities. Since its inception, thirty two (32) UEZs have been established in thirty seven (37) of the State’s most distressed municipalities including the City of Jersey City. Today, the celebrated UEZ program is a key factor in stabilizing the local economy and providing the labor market with desperately needed jobs.
In Jersey City, the Economic Development Corporation (JCEDC) administers the UEZ program which covers one third of the City including the Central Avenue Special Improvement District. Select one of the following options to learn more about the Jersey City UEZ program:
UEZ Benifits for Shoppers & Residents
Consumers who shop in the Urban Enterprise Zones save money by paying a reduced sales tax. City residents benefit from the program, because funds generated from the sales tax collection are used for capital investments in municipal services for Jersey City's Urban Enterprise Zone areas. For example, UEZ funds helped purchase new police cars, CCTV cameras, and facade improvements. More importantly, the UEZ program creates much needed new jobs for local residents.
UEZ Benefits for Jersey City Businesess
Businesses participating in the UEZ Program can access a number of financial programs designed to stimulate job creation and business growth.
• Qualified retail businesses may charge 50 percent of the state’s 7 percent sales tax on certain “in person” purchases.
• Revenue generated from the 3.5 percent sales tax is maintained in a Zone Assistance Fund (ZAF) and is dedicated to use within the zone for certain economic development and/or public service improvement projects.
• Sales tax refund for purchase of certain materials and tangible personal property. Small UEZ Businesses, with less than $1 million in annual gross receipts, can purchase certain goods and materials sales tax free.
• One-time corporation tax credit of $1,500 for each new, full-time permanent employee who is a resident of a municipality in which a zone is located and who had been unemployed for at least 90 days or dependent upon public assistance.
• Subsidized unemployment insurance costs for certain new employees with gross salaries of less that $4,500 per quarter.
• Tax credit against the Corporation Business Tax of 8 percent of Investment in the zone by an approved “In Lieu” agreement with the Urban Enterprise Zone Authority and Municipality.
• Priority financial assistance for loans, grants and job training.
• Business Retention and Relocation Assistance Grant (“BRRAG”) for relocation and retention of at least 250 non-retail jobs where the grant is a material factor. Special limitations/bonuses for UEZs.
• Business Employment Incentive Program (“BEIP”) applicants may be eligible for a grant award of up to 50 percent of the state income taxes withheld for new employees hired and may increase up to 80 percent if “Smart Growth.”
- Business Improvement Grant (Max Value of $20,000): 1:1 matching grant to make facade improvements to business and/or building.
How to Join the Jersey City UEZ
Business owners interested in joining the Jersey City Urban Enterprise Zone should contact the JCEDC during regular business hours Monday through Friday. The JCEDC is located at 30 Montgomery Street, Suite 820, and can be reached by phone at (201) 333-7797, ext. 25. Ask for UEZ Director Roberta Farber. An application will be issued, and there is no cost for applying to or entering the UEZ program. Applicant businesses MUST be registered with the State of New Jersey.