Empire Zone

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**AS OF JUNE 30, 2010**
THIS PROGRAM HAS ENDED FOR ANY NEW CERTIFICATIONS
 
 

What Does It Mean for Your Business?

Businesses that are certified in the program prior to June 30, 2010 will remain in the program and continue to be eligible for Empire Zone benefits for the duration of their benefit period as long as they are in compliance with the law and Empire Zone regulations. 

Certified businesses must continue to submit complete Business Annual Reports (BAR) to the local Zone Administrative Board (ZAB).  The Zone Administrative Board will continue all on-going administrative functions and responsibilities. 

  

 

Empire Zone Incentives

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The following Empire Zone incentives are available for businesses certified prior to June 30, 2010:

Wage Tax Credit
  • Tax Credit of $3,000 for targeted employees paid at least 135% of the minimum wage and $1,500 for other individuals employed in jobs in Empire Zones.
  • Applies to increase in employment.
  • Credit may be taken for up to five (5) consecutive years.
For additional information, see Publication 26

Investment Tax Credit (ITC)

  • Tax credit of 10% for business corporations (8% for personal income tax) applied against building cost and machinery & equipment associated with production property, industrial waste treatment facilities, purchases, air pollution control facilities, and research and development property acquired or built in an Empire Zone. An additional Employment Incentive Credit (EIC) is also available to corporations that create new employment. This credit equals 30% of the ITC for each of the following three (3) years in which the investment was made. For both the Investment Tax Credit and the Employment Incentive Credit use the following NYS tax form:
For addtional information, see Publication 26
  
Sales Tax Refund
  • Purchases of building materials used in connection with industrial or commercial property located in an Empire Zone are exempt from State (4%) and local Tioga County (4%) sales tax through a refund or credit process.
For additional information, see Publication 30

Tax Reduction Tax Credit

  • This credit is available to QEZE's. It is computed by a formula based on four factors:the percent employment increase in Zone; the Zone allocation factor; the income taxes owed by the company; and the benefit factor. This credit is for a 10 year period. (There is no carryover or refund provision with this credit).

Real Property Tax Credit

  • A Qualified Empire Zone Enterprise (QEZE) may claim a credit for real property taxes paid based on a formula that considers job creation, wages and benefits or investments made in the Zone. Further limitations may apply depending on zone and/or business type. PILOTS are eligible if held directly by the QEZE (not a holding company). Lessees may qualify if the lease agreement specifically states the lessee is responsible for paying the real property taxes, and the lessee can prove payment with a receipt from the taxing authority. The credit is available for 10 years and unused credits may be obtained as a cash refund in the year they were earned. For businesses EZ certified on or after April 1, 2009, the real property tax credit will be 75% of the amount calculated pursuant to the statute.
 
Sales Tax Exemption
  • Beginning September 1, 2009, a QEZE possessing an EZ retention certificate will no longer be eligible for an exemption.  Rather, the exemption converts to a refund, and the QEZE will be required to pay the sales tax and file a claim for a refund to NYS.  Claims for a refund can be made only once a sales tax quarter.