Empire Zone Investment Tax Credit



Empire State Development State
New York State’s Empire Zone (EZ) program provides a variety of tax incentives to businesses expanding and creating jobs in targeted areas (known as Empire Zones) throughout New York State. To receive Empire Zone benefits, businesses must be Empire Zone Certified. The Empire Zone program is closed to new participants. Currently certified Empire Zone businesses may continue to apply for and receive benefits, but no additional businesses can become certified. For more information about this, please visit the Empire Zone Program Sunset FAQs link, under Additional Information, below.

Investment Tax Credit
The Investment Tax Credit (ITC) is available to companies making an investment in depreciable property and/or equipment used in manufacturing, processing, assembly, R&D or financial institutions. The credit equals 10% under the corporate franchise tax and 8% for personal income tax filers of the eligible investment. Unused credits can be carried forward indefinitely and new businesses are eligible for a 50% refund of unused credits.

To claim the ITC, firms must pass an employment test. Typically, a company’s current number of employees must exceed its average number of employees for the year(s) prior to the year of certification.

An additional 3-year Employment Incentive Credit equal to 30% of the investment tax credit is available. Detailed information on the Employment Tax Credit is available under Links to Additional Information below.

Businesses must be located in an Empire Zone or qualify as a regionally significant project, and must become zone certified. Zone Coordinators are available to assist businesses determine if they qualify for zone certification.

New York City Empire Zones include the following areas:
  • Bronx: Hunts Point and Port Morris
  • Brooklyn: East Brooklyn, North Brooklyn/ Brooklyn Navy Yard, and Southwest Brooklyn
  • Manhattan: Chinatown and East Harlem
  • Queens: Far Rockaway and South Jamaica
  • Staten Island: North Shore and West Shore

Empire State Development
Small Business Division
633 Third Avenue, 33rd Floor
New York, NY 10017
Phone: (800) 782-8369
Website: http://esd.ny.gov/businessprograms/EmpireZones.html

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