Empire zones

The New York State Empire Zone Program

The New York State Empire Zone Program is a tax program that is designed to attract new businesses and increase business expansion. Empire Zones are geographically defined areas that offer numerous tax incentives for qualifying businesses located within the zone.

Davie Kaplan will help you to understand the following Empire Zone benefits and what they could mean to you and your business:

• Wage tax credit. For businesses that create full-time jobs in the Zone, this credit equals $1,500 per year, per job for up to five years. In some cases this credit can amount to $3,000 per year, per job.
• Investment tax and employment incentive credits. Businesses that make new investments in property and equipment that is principally used in the production of goods may qualify for credits of up to 10% of the cost. Additional employment credits are available if the investment creates additional jobs.
• Sales tax exemptions. Annual exemptions from state sales tax on purchases of goods and services used in the Zone are available for up to 10 years.
• Credit for real property taxes. This refundable credit is based on the amount of real property taxes paid on Zone property and a factor of increased employment in the Zone.
• Income tax reduction credit. A credit against New York State business or personal income tax attributable to the Zone business is available.
• Other benefits include sales tax refunds, utility rate reductions, and credits for purchasing shares in a Zone certified business.

Our job is not done until you are knowledgeable about these Empire Zone benefits and we have helped you to develop strategies to maximize all of the benefits that you are eligible for. Employment statistics are the key variable to obtaining and sustaining many of these benefits. We will work with you to monitor this crucial part of the program so that you can continue to earn the benefits for as long as the law allows.

For more information, contact Gregory A. Miller.