Account ServicesNY State Empire Zone Benefits
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.
Empire Zone: Benefits | Coordinators | Maps | Downloads
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 to businesses that locate or expand their
operations in an EZ.
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.
Empire Zone: Benefits | Coordinators | Maps | Downloads
