QEZE Tax Reduction Credit: Qualified
Empire Zone Enterprises are allowed a credit against business
or income tax equal to a percentage of taxes attributable
to the zone enterprise (effective taxable years beginning
on or after January 1, 2001).
EZ Wage Tax Credit: 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 Incentive
Credits: 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.
Zone Capital Credit: A 25%
tax credit against personal or corporate income taxes is
available for contributing or purchasing shares 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.
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. A similar refund or credit
of local sales tax may also be available from the locality.
Real Property Tax Abatement: EZs
may offer tax abatements from an increased assessment, with
the abatement value based on improvements to real property
for up to 10 years. This holds true for up to seven years
at 100%, decreasing over the last three years of the exemption.
Technical Assistance: Each
local zone office is staffed with professionals qualified
to assist businesses locating or expanding in an EZ.
Empire Zone (EZ) and Zone Equivalent
Areas (ZEA)Tax Credits (Gabrielle reviewing to
determine if the following is necessary)
A certified taxpayer may claim a wage tax credit for doing business and creating
jobs in Empire Zones (EZs). The credit equals the product of the average number
of newly hired EZ employees and the credit amount. For tax years up to and
including 2000, the credit amount is $1,500 for targeted employees and $750
for non-targeted employees. In tax years 2001 and beyond, the credit amounts
double to $3,000 for targeted employees and $1,500 for non-targeted employees,
and the credit may be taken for five years. Corporation franchise taxpayers,
banks, insurance companies, and personal income taxpayers may claim this credit.
Zone Equivalent Areas (ZEA) Wage Tax Credit: Taxpayers
employing individuals in areas eligible to become Empire
Zones (EZs) but not so designated (Zone Equivalent Areas
or ZEAs), may take a two-year credit for EZ wages paid for
full-time employment in jobs created in the ZEA. Taxpayers
must take the credit during the five-year period following
designation as a ZEA. The two-year credit equals $1,000 multiplied
by the average number of targeted employees and $500 multiplied
by the average number non-targeted employees hired during
the first year. In the second year, the credit amounts are
reduced to $500 for targeted employees and $250 for non-targeted
employees. For tax years 2001 and beyond, the credit amounts
increase to $3,000 for targeted employees and $1,500 for
non-targeted employees, and these amounts remain the same
throughout the entire five-year duration of the credit. Also
starting in 2001, taxpayers may take the credit during a
10-year period following designation as a ZEA. The total
wage tax credit cannot exceed 50 percent of tax due before
credits. Corporation franchise taxpayers, banks, insurance
companies, and personal income taxpayers may claim this credit.
EZ Investment Tax Credit (EZ-ITC) & Employment
Incentive Credit (EZ-EIC): Taxpayers may also
qualify for an investment tax credit of either 8 or 10
percent of the cost or other federal basis of tangible
personal property, including buildings and structural components
of buildings located within a designated empire zone (EZ).
The 8 percent rate applies to personal income taxpayers;
the 10 percent rate applies to corporations. Also, an employment
incentive credit applies in addition to the regular EZ-ITC
for taxpayers that increase their average number of employees
by at least one percentage point over the preceding base
year. Generally, this credit is 50 percent refundable to
new businesses. To encourage additional investment in Empire
Zones across the state, Article 9-A taxpayers are also
allowed to use the EZ-EIC credit against the alternative
minimum tax.
EZ Capital Tax Credit: Taxpayers
may qualify for credit for investments in zone capital corporations,
direct equity investments in certified zone businesses, and
contributions to community development projects. The credit
equals 25 percent of the sum of the investments and contributions.
The maximum credit per taxpayer is $300,000 and cannot exceed
one half of the taxpayer’s pre-credit tax. Corporate
franchise taxpayers, banks, insurance companies, and personal
income taxpayers may claim this credit.
Credit for Construction Materials Used
in Empire Zones (EZ): Taxpayers may claim a credit
against the sales tax for taxes paid on building materials
and other tangible personal property purchased for use in
constructing, expanding, or rehabilitating industrial or commercial
real property located in an Empire Zone.
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