Empire Zone Program
New York State's Empire Zone program was created to stimulate economic growth through a variety of State tax incentives designed to attract new businesses to New York State and to enable existing businesses to expand and create more jobs.
To participate in the Empire Zones Program, a business must first be located in an empire zone, or qualify as a regionally significant project, and become zone certified. To qualify for certification, a business must be able to demonstrate that it will create new jobs and/or make investments in the empire zone and be consistent with the local zone's development plan, including a cost-benefit analysis.
(source: http://www.empire.state.ny.us/Tax_and_Financial_Incentives/Empire_Zones/default.asp)
QEZE Sales Tax Exemptions: Qualified Empire Zone Enterprises (QEZEs) receive a 120 month exemption from State and, in some cases, local sales tax on purchases of goods and services (including utility and telephone services) used predominantly in an Empire Zone.
QEZE Credit for Real Property Taxes: Qualified Empire Zone Enterprises may claim a refundable credit against business or income tax equal to a percentage of real property taxes paid in the zone (effective for taxable years beginning on or after January 1, 2001).
QEZE Tax Reduction Credit: Qualified Empire Zone Enterprises may claim a credit against business or income tax equal to a percentage of taxes attributable to the zone enterprise (effective taxable years beginning on or after January 1, 2001).
EZ Wage Tax Credit: Companies hiring full-time employees in newly created jobs may claim this credit for up to five consecutive years. For employees in special targeted groups, this credit equals $3,000 per year, with a credit of $1,500 per year effective 1/1/2001, for all other new hires.
EZ Investment Tax and Employment Incentive Credits: Businesses that create new jobs and make new investments in production, property and equipment may qualify for tax credits of up to 19% of the company's eligible investment.
New Business Refund: Businesses new to New York State are entitled to a 50% cash refund of unused EZ-WTC and ITC amounts. Other businesses may carry forward unused credits indefinitely.
Utility Rate Savings: Special reduced electric and gas rates may be available through investor-owned utilities in New York State. Businesses that locate or expand their operations in an EZ may receive significantly reduced rates.
Zone Capital Credit: A 25% tax credit against personal or corporate income taxes is available for contributing or purchasing shares in a zone capital corporation; or for a direct equity investment in a certified zone business; or for contributions to approved community development projects within an EZ.
Sales Tax Refund or Credit: Purchases of building materials to be used in construction, expansion, or rehabilitation of commercial or industrial real property located in an EZ are eligible for a refund or credit of NYS and, in some cases, local sales taxes.
Real Property Tax Abatement: EZs may offer tax abatements from an increased assessment, with the abatement value based on improvements to real property for up to 10 years. This holds true for up to seven years at 100%, decreasing over the last three years of the exemption.
The Empire Zone Program can seem difficult to navigate. For this reason, Madison County has coordinators who specialize in these programs exclusively. They are available for free, confidential consultation. Call our offices at 315-697-9817 for more information. Additionally, information is available online at: http://www.empire.state.ny.us/pdf/ZoneApplication.pdf.
