QEZE: Qualified Empire Zone Enterprises

 

To be eligible for QEZE benefits, a business must not only be certified, but must also pass the “Employment Test.”  In order to pass, a business must at minimum maintain its total employment (including New York sites within and outside of the Empire Zone boundaries).

 

 **Links to forms are for Fill In PDF forms.  Click HERE to search for Non Fill In PDF forms and instructions.**

 

QEZE Sales Tax Exemptions: Qualified Empire Zone Enterprises (QEZEs) are granted a 10-year exemption from State sales tax (4.25%) on purchases of goods and services (including utility services) used predominantly in an Empire Zone.  QEZE’s still must pay the local sales tax of 3.75%.  Once certificate is received, use form DTF-80 to apply for exemption that lasts up to 15 years

 

QEZE Credit for Real Property Taxes: Qualified Empire Zone Enterprises are allowed a refundable credit against business or income tax equal to a percentage of real property taxes paid in the zone.  The percentage refund is determined based on employment increase in the zone.  Available at full amount for 10 yrs, then steps down 20% per year.  Use form CT-606 or IT-606 (fill-in for IT-606 is not yet available) to claim this credit.

 

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.  The credit is based on increased employment in the zone and the portion of the business (property and payroll) located within the zone.  Use form CT-604 or IT-604.

 

Zone Certified Businesses

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.  For non-targeted groups, there is a credit of $1,500 per year. Use form CT-601 or IT-601 to claim this credit.

EZ Investment Tax and Employment Incentive Credits (for industrial and manufacturing): Businesses that make new investments in production, property and equipment may qualify for tax credits of up to 10% of the company's eligible investment.  A portion of the credits are available for the next three years if the business creates jobs as well.  Available in first year new investment becomes useable (i.e. goes on-line).  Use form CT-603 or IT-603 to claim these credits.

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 Niagara-Mohawk and NYSEG. Businesses that locate or expand their operations in an Empire Zone may receive significantly reduced rates.  Available for 15 years – contact NiMo or EZ Coordinator.

Sales Tax Refund on Building Materials: Purchases of building materials to be used for commercial or industrial (not retail) real property located in an EZ are eligible for a refund of NYS sales taxes (4.25%).  Purchases are eligible after the effective date of the boundary amendment that included the property – but not to be claimed until state approves the boundary amendment.  Apply for the refund using form AU-11.