Financing Programs - Urban Enterprise Zones (UEZ) Manufacturers Energy Sales Tax Exemption

IF YOU ARE: An Urban Enterprise Zones (UEZ)-certified manufacturer employing at least 250 full-time workers, at least 50% of whom are involved in the manufacturing process.

YOU CAN APPLY 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.

IN THE AMOUNT OF:The sales and use tax otherwise applied to the energy.

BENEFITS: Energy consumed would otherwise bear the full prevailing tax rate.  This incentive eliminates that tax for qualifying manufacturers.

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 Application Processing Fee: $75 for standard processing; $200 for expedited processing (response within three business days)

*All fees are non-refundable.