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Click
here for a map of the new Zone boundaries (pdf
format)
The Empire Zones Program is a vital component of
New York State's effort to revitalize and expand New York's
economy. Empire Zones (formerly called Economic Development
Zones) are geographically defined areas where businesses have
access to vacant land, existing industrial and commercial
infrastructure, a skilled workforce and abundant resources
such as power and water supplies. The Empire Zones are particularly
attractive in that they offer numerous tax incentives for
qualifying businesses located within the zone.
On December 6, 2002, USA Niagara Development Corporation
Board of Directors announced the approval of a request to
revise the boundaries of the Niagara Falls Empire Zone. The
boundary revisions to this Zone will replace 139.3 acres of
land with 158 acres that have greater potential for near-term
economic development. The revision includes 63 acres within
the downtown USA Niagara Development District that have been
included in the Empire Zone Amendment. Included in the expanded
Zone are the areas along Third Street, Rainbow Boulevard,
Old Falls Street and the central core area between Third Street
and Rainbow Boulevard North.
Participating businesses are eligible to receive the following
tax credits and exemptions (as of February 2003):
- QEZE Sales Tax Exemptions. Qualified Empire Zone Enterprises
(QEZEs) are granted a 10-year exemption from State sales
tax on purchases of goods and services (including utility
services and owned vehicles) used predominantly in such
zone (effective March 1, 2001).
- QEZE Credit for Real Property Taxes. Qualified Empire
Zone Enterprises are allowed a refundable credit against
their business tax equal to a percentage of real property
taxes paid based upon increased employment in the zone (effective
for taxable years beginning on or after January 1, 2001)
- QEZE Tax Reduction Credit. Qualified Empire Zone Enterprises
are allowed a credit against their tax equal to a percentage
of taxes attributable to the zone enterprise (effective
taxable years beginning on or after January 1, 2001).
Additional Benefits
- Wage Tax Credit (WTC). This credit is available for up
to five consecutive years for companies hiring full-time
employees in newly created jobs. For employees in special
targeted groups, this credit equals $3,000 per year, with
a credit of $1,500 per year effective 1/1/2001, for all
other new hires.
- EZ Investment Tax and Employment Incentives Credit (ITC-EIC).
Businesses that create new jobs and make new investments
in production, property and equipment may qualify for tax
credits of up to 19% of the company's eligible investment.
- New Business Refund. Businesses new to New York State
are entitled to a 50% cash refund of unused EZ-WTC and ITC
amounts. Other businesses may carry forward unused credits
indefinitely.
- Utility Rate Savings. Special reduced electric and gas
rates may be available through investor-owned utilities
in New York State. Businesses that locate or expand their
operations in an EZ may receive significantly reduced rates.
- Zone Capital Credit. A 25% tax credit against personal
or corporate income taxes is available for contributing
or purchasing 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.
- Technical Assistance. Each local zone office is staffed
with professionals qualified to assist businesses locating
or expanding in an EZ.
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