Tax Credits and Benefits

In 1986, New York State addressed business needs and the needs of economically disadvantaged communities by providing tax credits and other incentives to firms that relocate or increase employment within designated areas called Empire Zones. Since that time Zone Benefits have increased and new types of benefits were added (QEZE Benefits).

QEZE Credit for Real Property Taxes: a refundable credit based on increase in employment in the zone multiplied by the eligible real property taxes.

QEZE Tax Reduction Credit: This credit is a reduction of state taxes based on a calculation that takes into account: increased employment in the zone, the ratio between the company’s assets and wages in the zone and out of the zone, and the tax factor. In some cases, this benefit can reduce taxes to zero.

EZ Wage Tax Credit: This is a $1,500-$3,500 per employee tax credit available for up to five consecutive years for companies hiring employees in newly created jobs located in the Zone.

EZ Investment Tax Credit: A credit against business taxes equal to 10% of an investment for C-Corps (and 8% of personal income tax for all others) made in property and/or equipment within a zone. Property must be principally used in manufacturing, processing, waste treatment or air pollution control, R&D or financial institutions.

Employment Incentive Credits: Taken in conjunction with the Investment Tax Credit. If employment increases in a given tax year, add 3% to the Investment Tax Credit rate.

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.  

Zone Capital Credit: A 25% tax credit against personal or corporate income taxes is available for making an equity investment 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.

Utility Rate Reductions

Discounts on Natural Gas
National Grid offers a Business Incentive Rate (BIR) to new or expanding companies that are zone-certified.

• A business should apply for the BIR within 6 months of receipt of the Empire Zone Certificate. 
• The BIR discount is up to 35% for a period of 12 years and phases out by 25% each year from years 13-15. The discount is applied to the gas delivery portion of your bill. 
• For new, zone certified customers who maintain gas consumption in excess of 250 therms per month, the discount is applied to the entire delivery portion of the bill.

GJDC Contact for More Information or Referral to Utility Representatives:
Tommy Wu, 718.291.0282 x146
twu@gjdc.org

There is no charge for applying for zone certification.
Application