Tioga
County Empire Zone Incentives
Incentives To Build On...
If you are looking to build your business, locating within the newly
transformed Empire Zone offers you a number of
significant short-term and long-term advantages, starting with these incentives:
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.
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.
New Companies to New York State
- New companies to New York State are entitled to a 50% cash refund of
unused credits for both the wage tax credit and the investment tax
credit.
Empire Zone Capital Tax Credit
- For Empire Zone certified businesses, loans are available through
the Statewide Zone Capital Corporation for working capital,
equipment acquisition or real property purchase.
- An investor who makes a direct equity investment in a certified
business may be eligible for a 25% zone capital credit.
- Contributors to an approved community development project within the
Empire Zone may receive a 25% zone capital credit based on their
contribution.
Sales Tax Refund
- Purchases of building materials used in connection with industrial or commercial
property located in an Empire Zone are exempt from State and local sales tax through a refund or
credit process.
Real Property Tax Exemption, Section 485e
- 10 year tax exemption program for the portion of increased taxes due to an increased
assessment, beginning the year in which the property is improved. 100% exemption for
7 years, decreasing 25% in each of the following 3 years until the property is fully
taxed. (Not available by all taxing authorities)
Utility Rates
- Agreements have been made with local energy and communications providers for rate
incentives. This applies to new energy loads / service.
Tax Reduction Tax Credit
- This credit is available to QEZE's. It is computed by a
formula based on the number of jobs created, company assets in the
Zone and in the State, and income taxes owed by the company. This credit is for a
10
year period. (There is no carryover or refund provision with this credit).
Real Property Tax Credit
- Allow a credit on existing property taxes being paid and is based on
overall employment in NYS. This credit is available for a
10-year period. (Unused credits may be obtained as a cash refund in
the year in which they were earned)
Sales Tax Exemption
- Purchases of tangible personal property and services sold to a
qualified business are exempt from the 4% NYS sales and uses
tax. An exemption certificate must be issued by NYS Taxation and
Finance and is available for a 10-year period as long as the business exceeds its base year employment number.
The Empire Zone Certification Process starts by completing an
application available at
our office.
Before meeting with the Empire Zone Coordinator, linked below is
information for your review. (available in Adobe (.pdf) format)
NYS Empire Zone Chairman's
Welcome Letter - To be announced NYS Empire Zone Application Process
- To be announced
NYS
Empire Zone Application
NYS Empire Zone
Instructions for Application
NYS
Department of Labor Guidelines for Unemployment Insurance, Workers'
Compensation Insurance and Disability Insurance
These basic criteria must be met:
- Your company must be located within the boundaries of our zone.
- Your company must be new or existing with new investment and / or retention / new employment.
- Your company must meet the criteria set in the Tioga
County Empire Zone Development Plan.
- Your company must pass a Cost / Benefit Analysis.
- There is no application fee. Email Teresa Saraceno
or call (607) 687-8260 today!
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