The Empire Zone Program was developed by New York State to foster the creation of jobs, enhance the property tax base and encourage investment into Zone businesses and properties. In 1994 Southwest Brooklyn was designated a participating community in the New York State Empire Zone Program. An Empire Zone location offers financial and tax incentives for new or expanding businesses. This can mean significant savings for companies and investors through a variety of resources and opportunities for businesses exploring startup or expansion projects.
As a New York State-designated Empire Zone, Southwest Brooklyn can offer expanding businesses located in the Zone the most-comprehensive package of business incentives available in New York State. New businesses that locate or expand in the zone, or increase employment significantly may be eligible for zero tax liability from New York State.
Southwest Brooklyn Empire Zone Map
Benefits of the Empire Zone Program include:
Wage Tax Credit (WTC)
$1,500 ($3,000 for a targeted employee) per qualified employee per year. Carry over of unused credits is allowed. New Businesses may claim 50 percent of unused credit as an overpayment of taxes Credit increases to $2,000 per employee when benefits to employee exceed $40,000
Benefit Period: 5 years
Investment Tax Credit (ITC)
The credit is 10 percent for a corporation and 8 percent for a personal income tax filer, applied against capital investments in real property or machinery purchased for manufacturing.
Benefit period: Year in which the asset is placed in service
Employment Incentive Credit (EIC)
30 percent of the Investment Tax Credit. Must maintain non-executive employment at a level of 101 percent of employment in the year prior to when the Investment Tax Credit was allowed.
Benefit Period: Years 2, 3, and 4 after claiming the ITC
Sales Tax Refund
Properties in the Empire Zone are eligible for a Sales Tax Refund on any construction materials.
Benefit Period: Year in which improvement is made.
Qualified Empire Zone Enterprise Business (must pass employment test to qualify)
Tax Reduction Credit (TRC)
Up to 100 percent credit towards NYS income tax, based on percent of employment increase.
Benefit Period: 10 years
Credit for Real Property Tax (CRPT)
Up to 100 percent credit of local property taxes based on percent employment increase. Unused credits may be obtained as a cash refund in the year which they were earned.
Benefit Period 10 years
Sales Tax Exemption (STE)
4.25 percent New York State exemption for virtually all categories of taxable items.
Benefit Period: 120 consecutive months following Certification Further Details
For further information contact:
Bryan Barrett, Zone Coordinator 718-965-3100 x 106 or bbarrett@sbidc.org |
