Empire Zone
Despite the sunset of the Empire Zone Program on June 30, 2010, certified businesses can exhaust their credits as long as they keep meeting all eligibility requirements.
Changes In Effect Since 2009
Sales Tax Exemption - this benefit was available to QEZEs certified prior to April 1, 2009 after applying for a sales tax exempt number to NYS Tax and Finance using DTF-82, DTF-83 or DTF-84 (see below) and receiving Form DTF-81. Legislation passed in 2009 made significant changes to this benefit, please see below and read Technical Service Bureau Memo 09 (12) s for more information.
Legislation passed in 2009 (Tax law section 1119(d)) states that the exemption is available only for purchases prior to August 31, 2009. For any purchase made on or after September 1, 2009, eligible QEZEs are required to pay the sales tax at point of purchase, and then claim a refund of the 4% NYS portion and .375% MCTD portion of the sales tax, using Form AU-12 (click here for instructions: Form AU-12-I ). In addition, to demonstrate that your business passes the employment test to be eligible to claim this benefit, businesses certified prior to April 1, 2005 have to submit Form AU-12.1; businesses certified on or after April1, 2005 and before April 1, 2009 submit Form AU-12.2
- For additional information, see Technical Service Bureau Memo 02 (5) S , Publication 718-Q and Technical Service Bureau Memo 09(12) s
- Tax Forms:
- Form ST-121.6 is now obsolete. See Notice 09_14 for more information
- Receive sales tax refund on fuel using Form FT-500, Instructions with form.
Property Owners
With the sunset of the Empire Zone program on June 30, 2010, previous benefits to property owners (such as 485-e real estate tax exemption and sales tax refund on building materials) are no longer available.
Certified Empire Zone Businesses
All certified businesses must report job openings with the NYS Department of Labor. To do so, please use the New York State Department of Labor's Job Order Form.
Investment Tax Credit of up to 10% is available for certified businesses for acquisition of building or equipment used in the production of goods, processing of financial securities, or emerging technologies. 2010 regulations state that eligible businesses can take advantage of this credit until April 1, 2014.
- For additional information on the Investment Tax Credit see Publication 26
- Tax Form IT-603, Instructions for Form IT-603
- Tax Form CT-603, Instructions for Form CT-603
Employment Incentive Credit equal to 3% of a qualified investment may be claimed in each of the three years following an investment tax credit, if the number of employees increases.
- For additional information on the Employment Incentive Credit see Publication 26
- Tax Form IT-603, Instructions for Form IT-603
- Tax Form CT-603, Instructions for Form CT-603
Wage Tax Credit for each new full-time job created in the Empire Zone is available each year for up to 5 years for certified businesses. This credit is $1500 for each new employee and $3000 for each new targeted employee.
- For additional information on the Wage Tax Credit see Publication 26
- Tax Form IT-601, Instructions for Form IT-601
- Tax Form CT-601, Instructions for Form CT-601
Qualified Empire Zone Enterprises (QEZEs)
A Qualified Empire Zone Enterprise (QEZE) is a business that has completed the certification process and has taken a second step to determine that it passes an annual employment test. QEZEs are eligible for the additional incentives below. For additional information, see Technical Service Bureau Memo 03 (4) C
Tax Reduction Credit is available to QEZEs. The credit reduces NYS business taxes in proportion to employment increase and presence in the Empire Zone.
- Tax Form IT-604, Instructions for Form IT-604
- Tax Form CT-604, Instructions for Form CT-604
- Tax Form CT-604-cp for Corporate Partners, Instructions for Form CT-604-cp
Real Property Tax Credit may be claimed by a QEZE that pays local property tax on property in the Empire Zone. The credit is based on the employment and/or investment. The benefit period of the credit is based on when the business becomes Empire Zone certified.
Please refer to NYS Tax and Finance for the most up-to-date information on the Empire Zone program and tax forms.
You may also contact EZ staff with any questions regarding the credits and eligibility.