The Benefits of Being a Qualified Empire Zone Enterprise (QEZE)

New York State’s powerful tax and financial incentive program provides a range of benefits for qualifying businesses. New and established businesses may qualify for benefits under this innovative economic development program. The following is an overview of Empire Zone (EZ) benefits:

Standard EZ Benefits
EZ Wage Tax Credit (WTC): This credit is applied against a business’s state tax liability and 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 for all other new hires.

EZ Investment Tax and Employment Incentive Credits (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 that are 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.

Enhanced EZ Benefits for QEZEs
Businesses located in EZs may be eligible for enhanced sales, property, and business tax incentives. QEZE eligibility and incentives are determined by several factors, including employment level and in-state business activity.

QEZE Tax Reduction Credit: QEZEs 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 Exemptions: QEZEs are granted a 10-year exemption from state sales tax on purchases of goods and services (including utility services) used predominantly in an EZ.

QEZE Credit for Real Property Taxes: QEZEs 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).

Other Incentives
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 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.

Technical Assistance
Each local zone office is staffed with professionals qualified to assist businesses locating or expanding in an EZ. In Warren County, the EZ Program is administered by EDC. Contact Jennifer Switzer, EZ Specialist, at 518.761.6007. Or, get started today by downloading a PDF of the application here.

Application (PDF)
Application Check Sheet (PDF)