Empire Zones

The Empire Zones Program was developed to help 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. New York State Empire Zone tax credits are available to all types of businesses: industrial, commercial, retail, and service, located within the boundaries of an Empire Zone.

Use of NYS tax credits are based on the creation of new jobs. The credits for Zone Certified Businesses (ZCB) include:

• QEZE Real Property Tax Credit or Refund: Qualified Empire Zone Enterprises are allowed a tax credit that may be used against paid real property taxes (up to $10,000 per new employee) with a benefit period of 10 years. Business must meet QEZE New Business Test and increase employment in zone and in NYS exceeding the average of the four years preceding the year of certification.

• 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).

• QEZE Sales Tax Exemption: The zone certified business whose employment exceeds the average employment during the three (3) previous years may be exempt from the NYS share of Sales Tax (4%) on tangible property, goods, and services used by the business for 10 years.

• Wage Tax Credit (WTC): A tax credit is available to a ZCB for up to five years for full-time employees hired to fill newly created jobs. The WTC is $1,500 for each new hire or $3,000 when new employees are from targeted groups (ie. Unemployed, honorably discharged veterans, social services, recipients, poverty income persons or families).

• EZ Investment Tax and Employment Incentive Credit (ITC-EIC). 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 a direct equity investment in a certified zone business; or for contributions to approved community development projects within an EZ. There is a limited availability of credits for each zone and are made available at the discretion of the local Zone Administrative Board.

For detailed information on Empire Zones, please visit Empire State Development.