Municipal Net Profit Tax


What is a JEDD or JEDZ?

A JEDD is a joint economic development district and a JEDZ is a joint economic development zone. Both are considered “municipal corporations” for purposes of the municipal net profit tax. JEDDs and JEDZs are territorial areas created by contract between municipal corporations, townships, and counties to promote economic development.  These districts and zones often impose an income tax on individuals and businesses located within the JEDD or JEDZ, and share the revenue from the tax between the parties to the contract.  For those businesses registering with the tax commissioner, the net profit tax on businesses operating within a JEDD or JEDZ should be reported on the tax return along with all other municipal corporations in which the businesses are subject to tax.