Business Relocation Urban Enterprise Zone

In 1983 the New Jersey State Legislature created legislation establishing the Urban Enterprise Zone program, which is intended to stimulate job creation in economically distressed areas. In 1994 the Township of Lakewood received Urban Enterprise Zone designation - the only Ocean County municipality with such a designation.

In order to participate in the Lakewood Urban Enterprise Zone program, a business must be located within the zone's geographic boundaries -- and meet the following employment criterion.

Businesses which were located in the zone prior to November 1, 1994 must increase their pre U.E.Z. program employment base by one additional employee during the first year;

Businesses which begin operation in the zone after November 1, 1994, in addition to increasing their pre U.E.Z. program employment base by one additional employee during the first year, must also have 25% of their full-time employees, hired during the first or second year in the program, be from one of the criteria below:

a) Residents of any Urban Enterprise Zone; 
b) Unemployed for at least six months prior to being hired and residing in New Jersey, or be recipients of New Jersey public assistance programs for at least six months prior to being hired; 
c) Determined to be economically disadvantaged by the Federal Jobs Training Act. 

If the Authority determines that an applicant is unable, in good faith, to meet the 25% requirement, the Authority may reduce the requirement below 25% for that business, conditioned upon the agreement of the business to implement and/or sponsor certain specified training and job programs for a period of at least five years.

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Benefits

Upon certification in the U.E.Z. program -- which usually occurs within four weeks of application, a business may immediately begin to take advantage of the following incentives:

• Personal tangible property, such as copiers, forklifts, building supplies, to be utilized at the place of business, may be purchased tax exempt 1. 

• Retail businesses may charge a reduced state sales tax rate of 3.5% on purchases made in person at their business location 2.

• Businesses which hire workers who meet one of the targeted criterion may be eligible to receive an unemployment insurance subsidy for each worker. 

• A one-time tax credit of $1,500, to be applied against New Jersey Corporate Income Tax, is allowed for each new full-time, permanent employee who resides in any municipality which contains a zone, and immediately prior to employment by the qualified business was unemployed for at least 90 days or dependent upon public assistance as the primary source of income. 

• A credit of $500 is allowed for new full-time permanent employees who do not meet the qualification for the $1,500 tax credit, but are residents of any municipality in which a designated enterprise zone is located, and were not employed at a location within the municipality immediately prior to employment by the qualified business. 

• Businesses may borrow up to $100,000 for working capital, equipment purchases, or building improvements at below market interest rates 3. 
  
  
  To date more than 200 businesses, employing some 6,700 workers, have participated in this successful program.
  
  1 Telecommunications services and Automobile purchases are not exempted.
  2 Automobiles, prepared foods, alcoholic beverages, tobacco products and general services do not apply.
  3 The interest rate, which is fixed for the term of the loan, is determined at the time of loan commitment.