Businesses > Economic Development > Empire Zone > Benefits

City of Albany County Empire Zones
Summary of Program Benefits

Tax Reduction Credit
The Tax Reduction Credit is a credit against business income, and is available for ten years. The tax reduction credit may reduce a firm’s tax liability to zero, eliminating the fixed dollar minimum and alternative minimum tax.

Wage Tax Credit
For every full time job created in the Zone your company will receive a $1,500 tax credit for five consecutive years. If you hire a “targeted” employee this credit increases to $3,000.

A targeted employee is someone whose income is below the poverty level, persons who may be eligible for benefits under the Job Training Partnership Act, recipients of public assistance or honorably discharged members of the U.S. armed forces.

Credit for Real Property Taxes
The credit for Real Property Taxes is based on a formula that considers job creation, wages, benefits, and investments made in the zone.

The formula is as follows: 25% of wages and benefits paid to Net New Employees during the taxable year (not exceeding $10,000 per employee) multiplied by the development zone factor.
The credit can also be calculated based on a businesses investment in the Empire Zone property.

Sales Tax Exemption
The Sales Tax Exemption applies to all tangible personal property predominately used or consumed by the business in the Empire Zone. This exemption applies to the New York State (4%) sales tax; the Albany County sales tax remains in effect.

Sales Tax Refund
A credit or refund of the 4% New York State and 4% local sales tax is available for the purchase of building materials used in the construction or renovation of industrial or commercial property located in a zone.

Investment Tax Credit & Employment Incentive Tax Credit
The Investment Tax Credit (ITC) is available to EZ-certified companies, which purchase or build production or research and development property or equipment in a zone. The credit is 10% (for a corporation) to 8% (for a personal income tax filer) of the total investment made, and may be claimed each time qualified property or equipment is acquired.

Companies that qualify for the ITC may claim the Employment Incentive Tax Credit (EITC) for three consecutive years. This credit is equal to 30% of the ITC. To qualify, the business must employ at least 1 additional employee than the year the ITC was claimed.

Zone Capital Tax Credits
An investor in a Zone Certified Business may claim Direct Equity Tax Credits equal to twenty-five percent (25%) of the amount of the investment, up to a maximum tax credit of $100,000 per investor. The 25% tax credit is against New York State franchise taxes.

485-e Real Property Tax Abatement
This allows for an abatement of increases in county, town and school real property taxes, which result from the construction or improvement to real property located in an EZ for a period of up to ten years.

Utility Rate Reductions
Customers of Niagara Mohawk Power Corporation should contact Brian Archambault at (315) 428-6072 to inquire about rate reductions for transmission costs. Certified businesses are eligible for any available reductions for increases in annual energy usage of at least 25 percent or 100 kilowatts.


Detailed Description of Program Benefits