Sullivan County has several Empire Zone designated areas, principally within the Towns of Thompson, Fallsburg and Liberty. This designation has dramatically enhanced the development conditions in Sullivan County. Extraordinary incentives are afforded to those businesses that are Qualified Empire Zone Enterprises (QEZE). Although the Empire Zone is scheduled to “sunset” on June 30, 2010, we are poised to leverage the State of New York’s newest program – The Excelsior Program – which is a jobs-based tax credit program designed to go on-line this summer, subject to legislative approval.
More information on Empire Zones:
www.tax.state.ny.us
http://www.empire.state.ny.us/Tax_and_Financial_Incentives/Empire_Zones/
Check Out the Excelsior Program!
Overview of the Excelsior Program
CURRENT EMPIRE ZONE BENEFITS (sunsets 06/30/10)
Real Property Tax Credit
A refundable credit that is computed based on a formula relative to the number of jobs created and the real property taxes paid on property in the Empire Zone. The credit is available for 14 years -10 years at 100%, decreasing 20% each year thereafter.
Investment Tax Credit
A refundable investment tax credit of 8% to 100/0 is available to certain businesses based on investments made an EZ. The credit is applied to corporate franchise tax and personal income tax obligations.
Wage Tax Credit
A 50% wage tax credit fir up to five years for hiring full time employees in newly created jobs. Employees in special targeted groups can result in credits of $3,000 per year with all other new hires receiving a credit of$1,500 year.
Employment Incentive Credit
A credit equaling 30% of the investment tax credit is available for each of the next three consecutive years following the year in which the investment tax credit is taken against the corporate franchise tax. To be eligible the taxpayer must employ 101 % of the average number of people employed in the year before the investment tax credit was claimed.
Sales Tax Refund/Exemption
Purchases of building materials to be used in connection with commercial or industrial real property located in an EZ are exempted from State sales tax through a refund process. In addition there is an exemption of 4% New York Sales and Use taxes for tangible personal property and services purchased and used by qualified zone businesses.
Zone Capital Credit
A 25% tax credit against personal or corporate income taxes is available for the contribution or purchase of 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.
Utility Rate Reduction
Special reduced rates are available through investor-owned utilities in New York to businesses that create or expand businesses in an EZ.
Contact Empire Zone Administrator
Ethan Cohen, 100 North Street, Monticello, New York 12701, (845) 807-0527
