Empire Zone Benefits
And
Related Tax Publications/References
The Empire Zones Program is a vital component of Governor Pataki's
effort to revitalize and expand New York's economy. Empire Zones
(formerly called Economic Development Zones) are geographically
defined areas where businesses have access to vacant land, existing
industrial and commercial infrastructure, a skilled workforce and
abundant resources such as power and water supplies. The Empire
Zones are particularly attractive in that they offer numerous tax
incentives for qualifying businesses located within the zone.
Participating businesses are eligible to receive the following
tax credits and exemptions:
QEZE Sales Tax Exemptions: Qualified Empire Zone Enterprises
(QEZEs) are granted a 10-year exemption from State sales tax on
purchases of goods and services (including utility services) used
predominantly in an Empire Zone.
QEZE Credit for Real Property Taxes: Qualified Empire Zone
Enterprises are allowed 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
are allowed 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: This credit is available for up to five
consecutive years for companies hiring full-time employees in newly
created jobs. 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 for commercial or industrial real property located in
an EZ are eligible for a refund or credit of NYS sales taxes. A
similar refund or credit of local sales tax may also be available
from the locality.
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.
Technical Assistance: Each local zone office is staffed
with professionals qualified to assist businesses locating or expanding
in an EZ.
The links below will take you to various resources relating to
the State's Empire Zones Program.