Tax Incentives
The following is a brief summary of the tax incentives available to businesses that have been certified to participate in the Tompkins County Empire Zone. Once a business is certified, it is eligible to claim tax credits and other benefits for ten consecutive years. Click here to learn more about Empire Zone Certification.
Important Information!
Base Benefits for Empire Zone Certified Businesses
Investment Tax Credit (ITC) Available to companies making an investment in the zone for depreciable property and/or equipment principally used in manufacturing, processing, assembly, industrial waste treatment or air pollution-control facilities, R&D or financial institutions. 10% of the eligible investment can be taken for credit (8% for personal income tax filers including S corps and partnerships). Tax Form: CT-603 (pdf) / CT-603 Instructions (pdf); CT-605 Financial Services (pdf) / CT-605 Financial Services Instructions (pdf); IT-603 (pdf) / IT-603 Instructions (pdf); IT-605 Financial Services (pdf) / IT-605 Instructions (pdf);
An additional Employment Incentive Credit (EIC) equal to 30% of the ITC is available for each of the three years after the ITC is claimed if employment that year increased from the employment in the year previous to the ITC. Tax Form: combined with ITC above.
Wage Tax Credit (WTC) Available to companies hiring full-time equivalent employees in the Zone. Credits are available for up to five consecutive years. Employees must work six months of the taxable year to claim credits. Credits are $1,500 per employee; an enhanced credit of $3,000 per employee is available for special targeted groups (honorably discharged veterans, etc.) earning at least 135% of minimum wage. The Dept. of Labor must pre-certify employees for the enhanced credit. Tax Form: CT-601 pdf) / CT-601 Instructions pdf); IT-601 (pdf) / IT-601 Instructions (pdf)
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Businesses may carry forward unused ITC, EIC and WTC credits. New businesses (less than five full taxable years) can request a 50% cash refund of unused amounts (EIC refund not available for corporations).
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Utility Rate Reduction Special reduced electric and gas rates are made available to new customers within 60 days of contracting for utility services. Contact NYSEG directly to determine availability and eligibility.
Enhanced Benefits for Qualified Empire Zone Enterprises (QEZE)
To receive QEZE benefits a business must be Zone certified and annually meet an employment test during the business tax benefit period the credit is claimed.
Sales & Use Tax Refund (STR) Beginiing September 1, 2009 a refund of the State portion of the sales tax at the point of purchase is available for most goods and services used directly and predominantly in the Zone, including vehicles and utilities. A refund for any locally imposed sales tax is not available in Tompkins County. The refund runs for 120 consecutive months from the effective date on the sales tax certification issued by the Department of Tax and Finance, provided the business continues to meet the employment test each year. Businesses certified after April 1, 2009 are currently not eligible for this incentive.
Changes effective 9/1/09: TSB-M-09 (12) (pdf)
Application Form: DTF-84 (pdf)
Local Sales and Use Tax Rates on Sales to QEZEs: PUB718Q (pdf)
Application for Refund of Sales Tax Paid on Automotive Fuels: FT-500 (pdf)
Sales Tax Collection Charts for Qualified Motor Fuel or Diesel Fuel: PUB873 (pdf)
Credit for Real Property Taxes (CRPT) A credit for real property taxes paid based on a formula that considers job creation, wages and benefits or investments made in the Zone. Further limitations may apply depending on zone and/or business type. PILOTS are eligible if held directly by the QEZE (not a holding company). QEZE tenants qualify if the lease agreement requires the tenant pay the taxes directly to the taxing authority and receive a receipt. The credit is available for 10 years and unused credits may be obtained as a cash refund in the year they were earned. Tax Form: CT-606 (pdf) / CT-606 Instructions (pdf); IT-606 (pdf) / IT-606 Instructions (pdf). For businesses certified after April 1, 2009, this credit is reduced by 25%.
Tax Reduction Credit (TRC) A credit against tax equal to a percentage of income taxes attributable to the zone enterprise based on its employment growth in the Zone. This credit is available for 10 years and can reduce a company’s tax liability to zero – eliminating the alternative minimum and fixed dollar minimum tax. The amount of the credit is the product of: benefit period factor, employment increase factor, zone allocation factor, and tax factor. Tax Form: CT 604 (pdf) / CT-604 Instructions (pdf); CT-604 Corporate Partners (pdf) / CT-604 Corporate Partners Instructions (pdf); IT-604 Fill In (pdf) / IT-604 Instructions (pdf)
More Details
The New York State Department of Taxation and Finance maintains Empire Zones Program Information on its website.
Case Studies (Coming soon)
Click here for an example of Empire Zone benefits to:
A small manufacturer (pdf)
A small company that is not a manufacturer (pdf)
A retail/restaurant (pdf)
