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Empire Zones
The New York State Empire Zone Program was created as a tool to stimulate economic growth through the use of tax incentives. The program provides a number of tax incentives designed to attract new businesses and jobs to the state, as well as providing assistance for existing businesses to expand and create more jobs.
Eligibility for the program is handled by local officials. Each of the Catskill region zones has a local Zone Coordinator who reviews the application and then forwards it to the State Department of Economic Development for certification. To become certified a business must be able to demonstrate that it will create new jobs and/or make investments that are consistent with the local Zone’s development plan.
Benefits for Empire Zone certified companies
- Wage Tax Credits: These credits are available for up to 5 consecutive years at $1,500 per employee, with special targeted groups raised to $3,000 per employee. In investment zones, the credit is raised an additional $500 for workers with salaries over $40,000.
- Investment Tax Credit: A 10% credit is available for investments for depreciable property and/or equipment which is principally used in manufacturing, processing, assembly, industrial waste treatment or air pollution control facilities, R&D, or financial institutions. An additional Employment Incentive Credit equal to 30% of the investment tax credit may also be available based on increased employment when the investment is made.
- Zone Capital Credits: A 25% tax credit is available for corporate or personal income tax purposes for eligible investments in certified zone businesses or approved community development projects. There is a $100,000 lifetime limit for those credits.
- NYS Sales Tax Refund: A refund of the state portion of sales tax (4% in Catskill region) is available for the purchase of building materials used for construction or renovation of commercial property located in a Zone. Empire Zone certification is not a requirement to receive the refund.
Qualified Empire Zone Enterprise (QEZE) enhanced zone benefits are also available to eligible businesses who meet additional tests based on business’ employment history and operations. These should be discussed with your local zone coordinator.
Local Benefits
Municipalities designated as Empire Zones may also offer additional incentives such as property tax abatements and additional sales tax benefits. Also, in many areas local utility companies may offer rate reductions to certified Empire Zone businesses, so check with local zone coordinator.
For complete details on and more information on Empire Zone tax incentives go to the NYS Department of Tax and Finance.