The Urban Enterprise Zone (UEZ) is a state-designated program to alleviate unemployment and to enhance the economic climate in distressed cities throughout New Jersey. The City of Paterson is one of New Jersey’s original Urban Enterprise Zones. In fact, one of the founders of the United States, Alexander Hamilton, helped formulate the city as a hub for the country’s growing industrial revolution. The Paterson UEZ was designated as an Urban Enterprise Zone in 1994 and plays a vital role in the City’s ongoing restoration and economic growth.
Tax Incentives
Today, Paterson retains it’s proud history and is making a true “silk to silicon” transformation. Central to this revitalization is the UEZ Program as it enables retail members to charge 3 1/2% sales tax giving them a competitive edge over other businesses. All UEZ business members benefit from the tax exemption allowed for operating supplies which includes 100% exemption from the NJ State Sales and Use Tax for the purchase of all tangible property (excluding motor vehicles). This includes the following:
- Office Supplies
- Services, including installation
- Building Materials
- Repairs and Improvements to existing properties
Other tax incentives include:
- Financial Assistance from agencies such as the New Jersey Economic Development Authority
- Subsidized Umemployment Insurance Costs for employees earning less than $4,500 per quarter
- Energy Sales Tax Exemption for qualified manufacturing firms with at least 250 full-time employees
- Tax Credit for up to $1,500 for new, permanent, full-time employees hired or up to 8% corporate business tax credit on qualified investments