The Empire Zone Program

The NYS Empire Zone program was developed by New York State to foster the creation of jobs, enhance the property tax base and encourage investment into Zone businesses and properties.

Wyoming County was designated a participating community in the Empire Zone Program on July 6, 2006. Wyoming County’s Zone includes 1,280 acres, or two square miles of the County. Empire Zone areas are located in the Town and Village of Arcade, Village of Attica, Town and Village of Castile, Town of Gainesville, Village of Silver Springs, Town and Village of Perry, and Village of Warsaw.

What the Empire Zone Means to Your Business

An Empire Zone (EZ) location offers financial and tax incentives for new or expanding businesses. This can mean significant savings for corporations and investors through a variety of resources and opportunities for business and property owners. The benefits associated with the Empire Zones Program are credits against New York income tax liability or franchise tax liability. The Empire Zones are particularly attractive in that they offer numerous tax incentives for qualifying businesses located within the zone. Participating businesses are eligible to receive the following tax credits and exemptions:

QEZE Sales Tax Exemptions:

Qualified Empire Zone Enterprises (QEZEs) are granted a 10-year exemption from State sales tax on purchases of goods and services (including utility services) used predominantly in an Empire Zone.

QEZE Credit for Real Property Taxes:

Qualified Empire Zone Enterprises 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).

QEZE Tax Reduction Credit:

Qualified Empire Zone Enterprises 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).

EZ Wage Tax Credit (EZ-WTC):

This credit is 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 effective 1/1/2001, for all other new hires.

EZ Investment Tax (ITC) and Employment Incentive Credits (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 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.

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. This holds true for up to seven years at 100%, decreasing over the last three years of the exemption.

Technical Assistance:

Each local zone office is staffed with professionals qualified to assist businesses locating or expanding in an EZ.

The new Empire Zone legislation adopted in 2006 includes a unique provision that allows for a business outside of a defined Empire Zone area that is deemed “regionally significant” participation in the Program. To be eligible as a regionally significant project, the business must meet one of the following criteria:

• The project cannot be accommodated within the separate and distinct EZ areas.
• Agribusiness, High Tech, Bio-Tech businesses must be making a $10 million investment and creating 20 new jobs.
• Financial, Insurance and Distribution businesses creating 300+ new jobs.
• Manufacturers creating 50+ new jobs.
• Other projects as defined by Empire State Development via rules and regulations.

For more information about Wyoming County’s Empire Zone Program or to learn more about all of the opportunities available for businesses expanding or locating in Wyoming County, please call James Pierce at the Wyoming County Business Center 1-800-951-9774 or send an email to jpierce@wycobusiness.org.