Empire Zone

Changes to Qualified Empire Zone Enterprise (QEZE) Program - Effective September 1, 2009

Chapter 57 of the Laws of 2009 (Chapter 57) amended certain provisions of the Tax Law and the General Municipal Law affecting the Empire Zones Program. These changes affect business entities claiming Qualified Empire Zone Enterprise (QEZE) sales tax benefits under Tax Law Articles 28 and 29. The purpose of this memorandum is to summarize the changes made by the legislation.

Please see link for additional information: TSB-M-09(12) ( 66.90 Kb) pdf

April 2009 Empire Zone legislative changes

Changes to the Empire Zone enacted in the 2009 NYS budget establish new requirements for certification and claiming incentives.

All certified businesses will now be required to pass a cost benefit test conducted by NYS Empire State Development. Based on the Business Annual Report, businesses must demonstrate that payroll and investments since 2001 or the date that the business was certified (whichever is the later) minimally equal the EZ benefits claimed. ESD will contact all certified businesses by mail with further information.

Businesses that pass the cost benefit test will be issued an Empire Zone Retention Certificate which they will need to present with their 2008 tax returns. Businesses that do not pass the test will be sent notices of decertification, along with information on the appeals process. There is also a group of businesses which is asked to provide more information to ESD.

Notifications from the state should be received by the businesses by the end of June 2009. If you need help responding to a notice of decertification, please contact our office immediately after receiving the notification from the state.

Businesses that have already filed 2008 tax returns without the Empire Zone Retention Certificate will need to submit an amended tax return after receiving the retention certificate.

For information on how the NYS Department of Taxation and Finance will process claims for EZ tax credits for years that begin on or after January 1, 2008, see TSB-M-09(5)C and TSB-M-09(4) pdf .

This bulletin also describes other changes to the Empire Zone program in detail. Please refer to it for information regarding the retention certificates, and how to file an amended tax return.

For an overview of the most important changes to the Empire Zone program, please also refer to this chart pdf.

Please contact your accountant immediately to inform them of these changes as they will affect your business and your tax filings.

Additionally, for businesses certified on or after April 1, 2009, the Real Estate Property Tax Credit has been reduced by 25%

Continue to visit our website at thinkdutchess.com for updates on the issuance of Empire Zone Retention Certificates and additional information.

Empire Zone

The Poughkeepsie/Dutchess Empire Zone offers powerful incentives to encourage employment growth and attract new investment within the designated areas. Most benefits are based on tax incentives made possible through the New York State Empire Zone Programs. There are tax advantages for business expansion and for property owners.

New businesses or businesses coming from another state could be virtually tax-free through New York State Empire Zone tax credits or refunds.

If your business is already operating in New York State, eligibility for Empire Zone incentives may vary depending on your business activity in the Empire Zone and throughout the state.

The Empire Zone also provides special opportunities to borrow or raise investment capital.

We can help you:

  • Find a location
  • Plan your investment and employment growth
  • Estimate your savings in the Empire Zone
  • Take advantage of the powerful tools of the Empire Zone

We can also help you tailor the program and make zone participation easy. Please contact EZ staff to discuss how the Poughkeepsie/Dutchess Empire Zone can work for your business.