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Urban Enterprise Zones (UEZ) Manufacturers Energy Sales Tax Exemption

Urban Enterprise Zone (UEZ)-certified manufacturers that employ at least 250 full-time workers, at least 50% of whom are involved in the manufacturing process, may be eligible for an exemption from the sales and use tax for electricity and natural gas utilities, both the commodity and its transmission, consumed at the UEZ-certified location.
  • Dollar Amount

    Sales and use tax otherwise applied to energy

  • Uses

    Electricity and natural gas consumed at UEZ-certified manufacturing locations


    Does not apply to oil or other energy supplies

  • Benefits

    Elimination of full prevailing tax on energy consumed

  • Eligibility

    Businesses must:

    Be manufacturers and continue to employ at least 250 full-time workers, at least 50% of whom are involved in the manufacturing process.


    Be manufacturers and continue to employ at least 250 full-time workers, at least 50% of whom are involved in the manufacturing process.


    File an annual application with the EDA, receive tax clearance and pass a site visit


    Maintain their UEZ certification throughout the exemption period

PROGRAM DETAILS:

  • The business must be a manufacturer and must continue to employ at least 250 full-time workers, at least 50% of whom are involved in the manufacturing process.
  • The business will file an annual application with the EDA and must receive tax clearance and pass a site visit.
  • The sales and use tax exemption applies to only electricity and natural gas consumed at the UEZ-certified manufacturing locations and cannot be applied to oil or other energy supplies.
  • The business must maintain its UEZ certification throughout the exemption period.

FEES*:

Division of Taxation Tax Clearance Certificate required.  Certificates may be requested through the State of New Jersey’s Premier Business Services (PBS) portal online.

  • Under the Tax & Revenue Center, select Tax Services, then select Business Incentive Tax Clearance.
  • If the applicant’s account is in compliance with its tax obligations and no liabilities exist, the Business Incentive Tax Clearance can be printed directly through PBS.
Please note:  It is the applicant/client’s responsibility to maintain a current and clear tax clearance certificate.  If a current and clear certificate is not evidenced to EDA at time of closing, EDA will not proceed with closing.
 

*All fees are non-refundable.