DUNKIRK-SHERIDAN EMPIRE ZONE OF NEW YORK STATE

FINANCIAL AND TAX INCENTIVES

The DS EZ works cooperatively with the Chautauqua County Industrial Development Agency, Empire State Development Corporation, and the Dunkirk Local Development Corporation to facilitate the availability of funds ranging from a few thousand dollars for a small business in need of working capital to a major manufacturer investing in large-scale improvements.

Zone Certified Businesses are eligible for state and local financing and tax incentives including Wage Tax Credits for hiring full time employees in newly created jobs and for hiring employees in specially targeted groups; Investment Tax Credits available under the corporate franchise and personal income tax, Employment Incentive Credits; Sales and Property Tax Abatements; and Zone Capital Tax Credits for contributing to or purchasing shares in the zone capital corporation, investing in a certified zone business, or contributing to approved community development projects, special electric and gas Utility Rate Reductions are available to businesses that locate or expand operations in the EZ.

Through the Statewide Zone Capital Corporation, low interest loans are provided via a revolving loan fund dedicated for Zone Certified Businesses.

EMPIRE ZONE BENEFITS

ZONE BENEFITS CALCULATOR
Use this spreadsheet to determine eligibility for Empire Zone tax credit benefits and to calculate approximate zone benefits that your QEZE business can expect to receive.

This file is in Excel format and requires

Microsoft Excel or the Microsoft Internet Explorer Excel browser plug-in. You must have macros enabled to use. Click "Cancel" when asked for password. This file is in zip format and needs to be unzipped with WinZip or compatible program before use.

QEZE
Qualified Empire Zone Enterprises (QEZEs) are eligible for sales tax exemption, real property and business tax credits for businesses locating and expanding in EZs. The purpose of the Empire Zones Program is to give companies that increase employment the opportunity to operate on an almost "tax-free" basis for up to 10 years in designated areas of the State, with additional savings available on a declining basis in years 11 through 15.

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 and owned vehicles) used predominantly in such zone (effective March 1, 2001).

QEZE Credit for Real Property Taxes. Qualified Empire Zone Enterprises 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 (effective for taxable years beginning on or after January 1, 2001)

QEZE Tax Reduction Credit. Qualified Empire Zone Enterprises are allowed a credit against their tax equal to a percentage of taxes attributable to the zone enterprise (effective taxable years beginning on or after January 1, 2001).

Additional benefits:
Wage Tax Credit (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 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.

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.

EMPIRE ZONE CERTIFICATION

Links below marked with "" require the use of Adobe Acrobat Reader, which is a free download from the Adobe website.

Frequently Asked Questions Qualified Empire Zone Enterprises (QEZE)

To be eligible for EZ benefits, a business must be physically located within the zone and must show evidence of new investment or job creation. A business will not be certified if it has shifted existing jobs to the zone from another location within the state. A business will not be certified if it owes back taxes to the county, municipality or school district.

A business must become certified to access benefits. Certification applications are obtained and processed by the local zone coordinator and certifier and processed with the state for confirmation and issuance of the EZ certificates. The business claims the tax credits/refunds with the New York State Department of Taxation and Finance and must submit a copy of the EZ certificate.

ACCESSING ZONE BENEFITS

DEPARTMENT OF TAXATION AND FINANCE
New York State Department of Taxation and Finance Home Page

Toll Free Number for Empire Zone Questions 1-888-372-0020

FINANCIAL AND TAX INCENTIVES The DS EZ works cooperatively with the Chautauqua County Industrial Development Agency, Empire State Development Corporation, and the Dunkirk Local Development Corporation to facilitate the availability of funds ranging from a few thousand dollars for a small business in need of working capital to a major manufacturer investing in large-scale improvements. Zone Certified Businesses are eligible for state and local financing and tax incentives including Wage Tax Credits for hiring full time employees in newly created jobs and for hiring employees in specially targeted groups; Investment Tax Credits available under the corporate franchise and personal income tax, Employment Incentive Credits; Sales and Property Tax Abatements; and Zone Capital Tax Credits for contributing to or purchasing shares in the zone capital corporation, investing in a certified zone business, or contributing to approved community development projects, special electric and gas Utility Rate Reductions are available to businesses that locate or expand operations in the EZ. Through the Statewide Zone Capital Corporation, low interest loans are provided via a revolving loan fund dedicated for Zone Certified Businesses. EMPIRE ZONE BENEFITS ZONE BENEFITS CALCULATOR Use this spreadsheet to determine eligibility for Empire Zone tax credit benefits and to calculate approximate zone benefits that your QEZE business can expect to receive. This file is in Excel format and requires Microsoft Excel or the Microsoft Internet Explorer Excel browser plug-in. You must have macros enabled to use. Click "Cancel" when asked for password. This file is in zip format and needs to be unzipped with WinZip or compatible program before use. QEZE Qualified Empire Zone Enterprises (QEZEs) are eligible for sales tax exemption, real property and business tax credits for businesses locating and expanding in EZs. The purpose of the Empire Zones Program is to give companies that increase employment the opportunity to operate on an almost "tax-free" basis for up to 10 years in designated areas of the State, with additional savings available on a declining basis in years 11 through 15. 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 and owned vehicles) used predominantly in such zone (effective March 1, 2001). QEZE Credit for Real Property Taxes. Qualified Empire Zone Enterprises 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 (effective for taxable years beginning on or after January 1, 2001) QEZE Tax Reduction Credit. Qualified Empire Zone Enterprises are allowed a credit against their tax equal to a percentage of taxes attributable to the zone enterprise (effective taxable years beginning on or after January 1, 2001). Additional benefits: Wage Tax Credit (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 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. 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. EMPIRE ZONE CERTIFICATION Links below marked with "" require the use of Adobe Acrobat Reader, which is a free download from the Adobe website. Related Links EMPIRE ZONE CERTIFICATION APPLICATION Frequently Asked Questions Qualified Empire Zone Enterprises (QEZE) To be eligible for EZ benefits, a business must be physically located within the zone and must show evidence of new investment or job creation. A business will not be certified if it has shifted existing jobs to the zone from another location within the state. A business will not be certified if it owes back taxes to the county, municipality or school district. A business must become certified to access benefits. Certification applications are obtained and processed by the local zone coordinator and certifier and processed with the state for confirmation and issuance of the EZ certificates. The business claims the tax credits/refunds with the New York State Department of Taxation and Finance and must submit a copy of the EZ certificate. ACCESSING ZONE BENEFITS DEPARTMENT OF TAXATION AND FINANCE New York State Department of Taxation and Finance Home Page Toll Free Number for Empire Zone Questions 1-888-372-0020 FORMS AND INSTRUCTIONS Sales and Use Tax: http://www.tax.state.ny.us/pdf/2002/st/dtf80_802.pdf http://www.tax.state.ny.us/pdf/1998/st/au11_1098.pdf Wage Tax Credits: http://www.tax.state.ny.us/pdf/2003/fillin/corp/ct601_2003_fill_in.pdf http://www.tax.state.ny.us/pdf/2003/fillin/inc/it601_2003_fill_in.pdf http://www.tax.state.ny.us/pdf/2003/corp/ct601_2003.pdf http://www.tax.state.ny.us/pdf/2003/corp/ct601i_2003.pdf Claim for EZ Capital Tax Credit: http://www.tax.state.ny.us/pdf/2003/fillin/inc/it602_2003_fill_in.pdf http://www.tax.state.ny.us/pdf/2003/inc/it602_2003.pdf http://www.tax.state.ny.us/pdf/2003/inc/it602i_2003.pdf Investment Tax Credits and Employment Incentive Credits: http://www.tax.state.ny.us/pdf/2003/fillin/corp/ct603_2003_fill_in.pdf http://www.tax.state.ny.us/pdf/2003/fillin/inc/it603_2003_fill_in.pdf http://www.tax.state.ny.us/pdf/2003/corp/ct603_2003.pdf http://www.tax.state.ny.us/pdf/2003/corp/ct603i_2003.pdf Real Property Taxes and QEZE Tax Reduction Credit: http://www.tax.state.ny.us/pdf/2003/fillin/corp/ct604_2003_fill_in.pdf http://www.tax.state.ny.us/pdf/2003/corp/ct604_2003.pdf http://www.tax.state.ny.us/pdf/2003/corp/ct604i_2003.pdf Real Property Taxes and QEZE Tax Reduction Credit for Corporate Partners: http://www.tax.state.ny.us/pdf/2003/fillin/corp/ct604cp_2003_fill_in.pdf http://www.tax.state.ny.us/pdf/2003/corp/ct604cp_2003.pdf http://www.tax.state.ny.us/pdf/2003/corp/ct604cpi_2003.pdf Ordering of Corporation Tax Credits: http://www.tax.state.ny.us/pdf/2003/fillin/corp/ct600_2003_fill_in.pdf http://www.tax.state.ny.us/pdf/2003/corp/ct600_2003.pdf http://www.tax.state.ny.us/pdf/2003/corp/ct600i_2003.pdf UTILITY RATE REDUCTIONS Niagara Mohawk http://www.niagaramohawk.com/youracct/priceenrg/buspricing/elecpricing/econdevprog.html National Fuel http://www.natfuel.com/forbusiness/getting_service.htm ADDITIONAL INFORMATION PUBLICATIONS Local Sales and Use Tax Rates For QEZE (Effective December 1, 2003) A Guide to Business Tax and Personal Income Tax Credits Within Empire Zones (2/01) (.64mb) Publication 30-Sales and Use Tax MEMOS Qualified Empire Zone Enterprise (QEZE) Tax Credits New Posting Qualified Empire Zone Enterprise (QEZE) Exemptions (Articles 28 and 29) Qualified Empire Zone Enterprise (QEZE) Exemptions (Articles 28 and 29) Qualified Empire Zone Enterprise (QEZE) Tax Credits (Articles 9A, 22, 32 and 33)
Read the latest Empire Zone News!

EMPIRE ZONE BENEFITS

EMPIRE ZONE CERTIFICATION

ACCESSING ZONE BENEFITS

FORMS AND INSTRUCTIONS

UTILITY RATE REDUCTIONS

ADDITIONAL INFORMATION