empire zones

Empire Zones (EZ) are designated areas within Seneca County that offer special incentives to encourage economic development, business investment and job creation. Certified businesses located within a designated zone are eligible to receive significant tax credits and benefits. The Seneca County EZ may be a virtually tax-free zone in "best case" situations. To learn more about becoming a certified EZ business, visit the State Empire Zone website. If you become certified, your businesses may be eligible for the following incentives.

Some Features:

Tax Reduction Credit: Qualified Empire Zone Enterprises (QEZE) are allowed a credit against their tax equal to a percentage of taxes attributable to the zone enterprise. The tax reduction credit is applied against business corporate taxes, personal income taxes, banking corporation or insurance corporation taxes. The credit is computed by a formula based on the numbers of jobs created, the company's assets in the Zone and in the State, and the income taxes owed by the company. This credit is available for a 15-year period - 10 years at 100%, decreasing 20% each year thereafter. The Tax Reduction Credit may reduce the company's tax liability below the alternative minimum tax to as low as zero, if the business is located entirely within the zone, or as low as the fixed dollar minimum where the business has locations both in and outside of the zone.

Real Property Tax Credit: Qualified Empire Zone Enterprises (QEZE) are allowed a refundable credit against their business tax equal to a percentage of real property taxes paid based upon increased employment in the zone. The Real Property Tax Credit is applied against business corporate taxes, personal income taxes, banking corporation, or insurance corporation taxes. The credit is computed by a formula based on the number of jobs. Credit is available for a 15-year period - 10 years at 100%, decreasing 20% each year thereafter. The Real Property Tax Credit may reduce the company's tax liability to the alternative minimum tax or the fixed dollar minimum. Unused credits may be obtained as a cash refund in the year in which they were earned.

Sales Tax Exemption: A QEZE may be eligible for an exemption from the 4% New York State sales and use taxes on tangible personal property and services (including utility services and owned vehicles). A New York State sales tax exemption may be issued annually to eligible businesses.

Wage Tax Credit: A New York State tax credit of $1,500 or $3,000 for five consecutive years for each newly created full-time job.

EZ Investment Tax and Employment Incentives Credit (ITC-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.

Reduced Utility Rates: 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.

Low Interest Loans: Loans for a term of up to 20 years for facility improvements, equipment and machinery purchases, and real estate acquisitions at 5% interest.

For more information on the Seneca County Empire Development Zone program, contact the Empire Zone Program Coordinator at 315-539-1727.

For more information on the Low Interest Loan Programs, contact the Business Loan Coordinator at 315-539-1725 for more information.  www.empire.state.ny.us/default.asp