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OVERVIEW
OF BENEFITS
New
York's Empire Zone program is among the most generous business
incentive programs in the nation. New or expanded businesses
located in the Essex County Empire Zone can qualify for cash
and tax benefits that reduce or eliminate business taxes.
Most
business certified prior to April 1, 2005 are eligible for
the following benefits for up to 15 years. For businesses
certified after this date the benefit period is 10 years and
some formulas for determining eligibility and computing benefits
have been changed.
http://www.tax.state.ny.us/pdf/memos/multitax/m06_1c_2i.pdf
http://www.tax.state.ny.us/pdf/memos/sales/m05_16s.pdf
INVESTMENT
TAX CREDIT (ITC)
A tax
credit is available for manufacturers that make new investments
in production, research & development property and equipment.
Credit is 10% of the cost for business corporations;
8% for personal income tax.
EMPLOYMENT
INCENTIVE CREDIT (EIC)
Tax
credit equal to 30% of the ITC is available in each of the
three years following an Investment Tax Credit when the number
of employees is at least 101% of the number employed in the
EZ prior to the year the ITC was claimed.
NEW
BUSINESS REFUND
A new
business may take up to 50% of unused ITC, EIC and WTC as
a refund. Other businesses may carry forward unused
credits indefinitely.
WAGE
TAX CREDIT (WTC)
Tax
credit for each new full time job is available for up to five
years. For employees in special targeted groups, this
credit equals $3,000 per year, with a credit of $1,500 per
year for all other new hires. More information on this
credit can be found at the New York State Department of Labor.
NYS
Department of Labor
ZONE
CAPITAL CREDIT
A 25%
tax credit against personal or corporate income taxes is available
for direct equity investments in certain certified zone business
or for contributions to approved community development projects
within Essex County EZ.
EXPEDITED
PERMITTING
Permit
applications for businesses located in the Empire Zone are
given priority processing.
POWER
EZ
certified businesses may be eligible to receive National Grid
benefits if they have permanently increased their usage by
25% over the previous year or may be eligible for more substantial
benefits. Benefits can extend for 10 years from the
cut-in date. All businesses are evaluated by National
Grid on a case-by-case basis, according to usage. Similar
benefits may be available for NYSEG (New York State Electric
and Gas).
http://www.nationalgridus.com/niagaramohawk/business/ecdev/growing/5_empire_zone.asp
http://www.nyseg.com/nysegweb/webcontent.nsf/business/EcoDevPrgIncentives#2
VERIZON
Business
must be EZ certified. A 5% reduction applies to all
local and 518 area code calls, plus basic service. Benefits
extend for 10 years from the application date, or until the
Zone's life ends, whichever is first.
ENHANCED
EMPIRE ZONE BENEFITS / QUALIFIED EMPIRE ZONE BUSINESS (QEZE)
SALES
TAX EXEMPTION
A 10-year
exemption from State sales tax on purchases of goods and services
(including utility services and owned vehicles) used predominantly
within the zone. Requires and additional application
to NYS Department of Taxation and Finance.
REAL
PROPERTY TAX CREDIT
A tax
credit equal to a percentage of real property taxes paid in
the zone in proportion to employment increase or capital investment
value is allowed property owners and certain lessees as a
refundable credit against business or income tax.
TAX
REDUCTION CREDIT
A tax
credit that can reduce or eliminate all New York State tax
liability generated by Empire Zone operations. Based
on formula.
BUSINESSES
LOCATED IN ESSEX COUNTY EZ (CERTIFICATION NOT REQUIRED)
SALES
TAX REFUND
Refund
of the 4% New York State Sales Tax towards the purchase of
building materials for construction and/or renovation of industrial
and commercial property, not used exclusively for retail sales.
www.tax.state.ny.us/pdf/publications/sales/pub30_201.pdf
ONLINE
TOOLS & INFORMATION
Empire
Zone Certification Application (online - 11/18/03)
After
reading about the Empire Zone Program and its benefits, if
your business is located in the Essex County Empire Zone and
you are interested in becoming zone certified, click the button
above to view and download the Empire Zone Certification Application.
This
application must be filled out completely and accurately,
notarized and returned to:
Barb Brassard / Essex County Empire Zone Coordinator
P.O. Box 217
7566 Court Street
Elizabethtown, NY 12932
If
you have questions about the application or whether you are
actually located in the Zone, please call the Essex County
Empire Zone Office at 518-873-9114.
Only
businesses located on zone land may be eligible to apply for
certification.
*Note:
This publication is in Adobe PDF format and will take a few
minutes to download with a high-speed connection. Dial-up
connections will take much longer.
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