New York State
Empire Zones Program


New York State Empire Zones (EZs), formerly known as Economic Development Zones are designated geographic areas that offer special incentives to encourage economic development, business investment and job creation. Certified businesses in the zone who are eligible could qualify for significant tax credits, sales tax benefits as well as a utility discount.

EZ Benefits Include


  • Wage Tax Credit (WTC)

    • This NYS Income Tax Credit is available for up to five consecutive years for qualified EZ certified companies hiring full-time employees in newly created jobs within the zone. For employees in special targeted groups, this credit equals $3,000 per year per new job and $1500 for all other new hires. Businesses new to NY are eligible to receive a 50% cash refund of any unused WTC amounts. Other businesses may carry forward any unused credits indefinitely.
     
  • Investment Tax Credit (ITC) and Employment Incentive Credit (EIC)

    • This NYS Income Tax Credit is available for qualified EZ certified manufacturing, R&D, and investment firms who make qualified investments in the zone. The percentage is 10% for business corporations (C-Corps) and 8% for individuals, sole proprietors, partnerships or S-Corps. An additional 3% credit (EIC) is allowed for each of the three taxable years immediately following the taxable year that the ITC was allowed provided certain employment requirements are met. Businesses new to NY are eligible to receive a 50% cash refund of any unused ITC amounts. Other businesses may carry forward any unused credits indefinitely.
     
  • 485-e Property Tax Abatement

    • This abatement provides a reduction in the taxable assessment based upon physical renovation or new construction within the Empire Zone. The abatement is spread over a ten-year schedule with 100% exempt for the first seven years and decreasing 25% per year thereafter.
     
  • Sales Tax Refund

    • 8% refund of sales tax paid on purchases of building materials used in commercial and industrial improvement projects within the EZ. 
     
  • The Real Property Tax Credit

    • This refundable NYS Income Tax Credit is found by computing a formula based upon the number of new jobs created in the zone and the real property taxes paid on property within the zone. This credit is available for a 14-year period. After ten years, the credit decreases by 20% each year thereafter. (Effective taxable years beginning on or after January 1, 2001)
     
  • Tax Reduction Credit

    • This NYS Income Tax Credit is found by computing a formula based on the number of new jobs created in the zone, the company's assets in the zone and in the state, and the income taxes owed by the company. (Effective taxable years beginning on or after January 1, 2001)
     
  • Sales Tax Exemption

    • 4% NYS sales and uses tax exemption for tangible personal property and services sold to qualified EZ businesses that is used predominantly in an EZ. Please note: on an annual basis, an employment test must be met both in the zone and out of the zone within NYS in order to qualify for this benefit.
     
  • Zone Capital Credit

    • This NYS Income Tax credit is available for qualified investments in a Zone Capital Corporation, a direct equity investment in a certified EZ business or a contribution in an approved community development project located within the zone. The amount of the credit is equal to 25% of the eligible investment or contribution.

    A utility discount on increased load of at least 25% through RG&E, may be available. Please consult the NYS Empire Zone Tax Law and your Tax Accountant to verify specific eligibility requirements.

    If your business is located within an EZ, or is interested in locating in an EZ, 
    please contact the City of Rochester Empire Zone at (585)428-6853.
     

    For more specific tax information or to download NYS tax forms go to www.tax.state.ny.us/sbc/empirezone.htm