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Previously Existing Manufacturer

New Retail Enterprise

New Manufacturer

Example 1

Previously Existing Manufacturer

This business was started in 1998 and was zone-certified in 2000 when they had a major expansion.  It is a manufacturer with no other New York locations and regularly makes investments in its facility.  The company chose not to include the Department of Labor in certifying employees as “targeted,” so all employees are counted as non-targeted for wage tax credit purposes.  Unless otherwise noted, the tax credit information is for the 2003 tax year.

Employment Test

Year Zone Certified: 2000

Base Year: 1998                                                    1998 Employment: 4 FTE

Current Employment: 13 FTE

*Passes Employment Test because current employment is greater than in base year.

QEZE Tax Reduction Credit and Real Property Tax Credit

100% of property and payroll is in the Empire Zone

Current Employment: 13 FTE

Test Year (year before certified): 1999             1999 Employment: 6 FTE

*Eligible for 100% tax reduction and property tax reimbursement because current employment is more than 100% increased from the test year and business is still in Year 1-10 of being certified.

QEZE Sales Tax Exemption

*Eligible for state sales tax exemption because passes employment test.

Wage Tax Credit

Created 7 jobs in 2000 to bring total FTE to 13

Took credits for past 3 years and will take tax credit for 2003 (Year 4 of the credit)

*Credit = 7 x $1500 = $10,500                       $1500 per non-targeted employee

Investment Tax Credit and Employment Incentive Credit

Investment in 2003: $822,000

*Investment Tax Credit: $822,000 x 10% = $82,200

If more employment in 2004, eligible for an employment incentive credit of

$82,200 x 30% = $24,660 in 2005, 2006, and 2007

 

 

Example 2

New Retail Enterprise

This business was zone-certified in 2002, the same year it was started.  It is a retail business with no other New York locations.  Again, the company chose not to include the Department of Labor in certifying employees as “targeted,” so all employees are counted as non-targeted for wage tax credit purposes.  Unless otherwise noted, the tax credit information is for the 2003 tax year.

Employment Test

Year Zone Certified: 2002

Base Year: new business (base employment = 0)

Current Employment: 18 FTE

*Passes Employment Test because current employment is greater than in base year.

QEZE Tax Reduction Credit and Real Property Tax Credit

100% of property and payroll is in the Empire Zone

Current Employment: 18 FTE

Test Year (year before certified): new business (test employment = 0)

*Eligible for 100% tax reduction and property tax reimbursement because current employment is more than 100% increased from the test year and business is still in Year 1-10 of being certified.

QEZE Sales Tax Exemption

*Eligible for state sales tax exemption because passes employment test.

Wage Tax Credit

Created 15 jobs in 2002 and 3 jobs in 2003

Took credits in 2002 for 15 employees and will take tax credit for 2003 for 18 employees (Year 2 of benefit period)

*Credit = 18 x $1500 = $27,000                       $1500 per non-targeted employee

Investment Tax Credit and Employment Incentive Credit

*Ineligible because business is not a manufacturer

Example 3

New Manufacturer

 

This business was zone-certified in 2003, the same year it started.  It is a manufacturer with no other New York locations and became zone-certified before purchasing its location.  The company included the Department of Labor in hiring and certifying employees as “targeted,” so some employees are counted as targeted for wage tax credit purposes.  Unless otherwise noted, the tax credit information is for the 2003 tax year.

Employment Test

Year Zone Certified: 2003

Base Year: new business (base employment = 0)

Current Employment: 25 FTE

*Passes Employment Test because current employment is greater than in base year.

QEZE Tax Reduction Credit and Real Property Tax Credit

100% of property and payroll is in the Empire Zone

Current Employment: 25 FTE

Test Year (year before certified): new business (test employment = 0)

*Eligible for 100% tax reduction and property tax reimbursement because current employment is more than 100% increased from the test year and business is still in Year 1-10 of being certified.

QEZE Sales Tax Exemption

*Eligible for state sales tax exemption because passes employment test.

Wage Tax Credit

Created 25 jobs in 2003, Year 1 of the credit

Hired 8 targeted employees and 7 non-targeted employees

Credit = 8 x $3000 = $24,000                       $3000 per targeted employee

Credit = 7 x $1500 = $10,500                       $1500 per non-targeted employee

*Total Credit = $34,500

Investment Tax Credit and Employment Incentive Credit

Investment in 2003: $2,550,000

*Investment Tax Credit: $2,550,000 x 10% = $255,000

If more employment in 2004, eligible for an employment incentive credit of

$255,000 x 30% = $76,500 in 2005, 2006, and 2007

 

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