The Empire Zone Program

Zone Capital Credits Provision

Zone capital credits are a provision of the General Municipal Law Article 18-B, Section 964 amended in 1994. Regulations governing these credits are located in 5NYCRR Chapter II Economic Development Zones, Parts 13 and 14.

The purpose of this provision is to stimulate economic activity in an Empire Zone by granting each Zone a $2.5 million allocation of New York State tax credits. These credits may be used by Zones to encourage such economic activity by offering a 25% tax credit against New York State franchise taxes or personal income taxes for investments and contributions in the following categories:

• Direct equity investments in Empire Zone certified businesses; and
• Contributions of money to approved community development projects.