Turner/Cruz-Perez Bill to Reestablish and Extend UEZ Designations Clears Senate

Bill extends UEZ Program in Bridgeton, Camden, Newark, Plainfield, and Trenton

TRENTON – Legislation sponsored by Senators Shirley K. Turner and Nilsa Cruz-Perez that extends the duration of certain designated urban enterprise zones (UEZ) until December 31, 2023 was approved by the Senate today.

The New Jersey Urban Enterprise Zone Program provides incentives to encourage businesses to locate to urban enterprise zones (UEZ) and create private sector jobs by providing public and private investments to create an economic climate that will revitalize those communities.

“The UEZ has been an important tool for distressed cities to encourage business growth, stimulate local economies, and create jobs within the community,” said Senator Turner (D-Mercer/Hunterdon). “By reestablishing the program in these five municipalities, we will continue providing opportunities for these disadvantaged communities to not only attract new companies that bring jobs for local residents but also to keep existing businesses and to keep our residents employed.”

“The UEZ program has been of great help to these struggling municipalities,” said Senator Cruz-Perez (D-Camden/Gloucester). “Loss of the program is a major step backward that we should avoid.”

The bill, S-846, would extend to December 31, 2023, the designation of the five UEZs that have already expired and the designation of any UEZ set to expire before December 31, 2023.  The five municipalities whose UEZ designation is expired since January 1, 2017 are Brighton, Camden, Newark, Plainfield, and Trenton.

The bill would also require the UEZ Authority to conduct a comprehensive analysis of the program and to issue a report on its findings within twelve months of the bills enactment.  The study would make recommendations including assessing whether changes to future funding needs to be addressed and whether the criteria for eligibility are appropriate.

Currently, there are 27 zones in 32 municipalities designated based on factors including high unemployment, low investment in new capital, blighted conditions, obsolete or abandoned industrial or commercial structures, and deteriorating tax bases.

The program was enacted in 1983 as a way to revitalize urban communities and also authorize qualifying retail businesses in the UEZ program to charge and collect the State’s sales and use tax at one half of the normal rate. Furthermore, qualifying businesses get other financial incentives and access to financing options from the EDA.  In addition to stimulating businesses in distressed communities, the program provides local hiring opportunities by requiring businesses in UEZs to hire a percentage of full-time employees who live locally, are unemployed or receiving public assistance, or determined to be low-income.  The program also provides funding for improvements in downtowns to help make the area attractive for economic development.

The bill cleared the Senate by a vote 29-0, and now goes to the Governor’s desk.