| State: |
NJ |
| Incentive Type: |
Sales and Use Tax Incentives |
| Incentive Title: |
Sales Tax Exemptions |
| Description: |
1. New Jersey Urban Enterprise Zones Sales Tax Exemption Program The UEZ Sales Tax Exemption Program is available to UEZ certified manufacturers with at least 250 full-time employees, 50% of whom are involved in the manufacturing process. The program provides sales tax exemption on energy and utility services (natural gas and electricity).
2. Energy Sales Tax Exemption (Salem County)
Available to manufacturing facilities in Salem County.
Program Provides sales tax exemption for the retail sale, transmission, or distribution of electricity and natural gas.
3. Sales and Use Tax Exemption Program
Available to companies with 1,000 or more employees that needs to make purchases for construction and renovation of a new business location, the program provides a sales tax exemption certificate. The exemption is of the State’s 7% sales tax on all purchases of machinery, equipment, furniture, fixtures and building materials other than tools and supplies for placement at the project location without the imposition of sales and use tax until the new facility is functional. The Sales and use Tax Exemption program (STX) is often used in conjunction with the BRRAG tax credit program.
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| Eligibility Requirements: |
1.To be eligible for this program a business must meet the following criteria have a current UEZ certification, employ at least 250 full-time employees of whom 50% or more are employed in the manufacturing process, not be in default under any other program administered by the State of New Jersey and obtain a tax clearance certificate.
2.The energy and utility services must be consumed exclusively at the facility. The business must be located in Salem County, must be a manufacturer and must employ at least 50 people, at least 50% of whom are directly involved in the manufacturing process.
3.A company must have 1,000 or more employees and relocate at least 500 workers to a new substantially rehabilitated facility. Life sciences or manufacturing companies relocating 250 or more employees may be eligible.
Companies must maintain the retained full-time jobs for five years. Qualifying companies must demonstrate that receiving the Sales and Use Tax Exemption benefit is a material factor in the company’s decision not to relocate outside of NJ. Company must provide health care benefits to employees and they or a predecessor entity must have operated in NJ for at least 10 years. (Point-of-Purchase/Retail facilities are excluded.)
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