Empire Zone

Property Owners*

Sales Tax Refunds of the state (4%) and the county (3.75%) sales tax may be claimed on the purchase of building supplies used in construction or capital improvements of industrial or commercial properties. For more information on the other counties, see Publication 718-EZ.

• For additional information see Publication 30.
• Tax Form AU-11 with instructions.

Real Estate Tax Exemption (485e) is available in the City of Poughkeepsie for increases in assessment resulting from property improvements. Local implementation of this incentive varies.

• Apply using 485e form, Instructions for 485e.

*For certified businesses that own property see information below for additional Incentives

Certified Empire Zone Businesses

Investment Tax Credit of up to 10% is available for certified businesses for acquisition of building or equipment used in the production of goods, processing of financial securities, or emerging technologies.

• For additional information on IT-603 see Publication 26.
• Tax Form IT-603, Instructions for IT-603.
• Tax Form CT-603, Instructions for CT-603.

Employment Incentive Credit equal to 3% of a qualified investment may be claimed in each of the three years following an investment tax credit, if the number of employees increases.

• For additional information on IT-603 see Publication 26.
• Tax Form IT-603, Instructions for IT-603.
• Tax Form CT-603, Instructions for CT-603.

Wage Tax Credit for each new full-time job created in the Empire Zone is available each year for up to 5 years for certified businesses. This credit is $1500 for each new employee and $3000 for each new targeted employee.

• For additional information on IT-603 see Publication 26.
• Tax Form IT-601, Instructions for IT-601.
• Tax Form CT-601, Instructions for CT-601.

Qualified Empire Zone Enterprises (QEZEs)

A Qualified Empire Zone Enterprise (QEZE) is a business that has completed the certification process and has taken a second step to determine that it passes an annual employment test. QEZEs are eligible for the three additional incentives below. For additional information, see TSB-M-03(4)C.

Sales Tax Exemption of the 4% NYS portion and .375% MCTD portion of the sales tax on nearly all taxable purchases of tangible property and services is available to a QEZE once it passes an employment test. The exemption is available for 120 months.

• For additional information, see TSB-M-02(5)S or Publication 718-Q.
• Tax Forms:
  • DTF-82 - for businesses certified before August 1, 2002.
  • DTF-83 - for businesses certified on or after August 1, 2002.
  • DTF-84 - for businesses certified on or after April 1, 2005.
• Receive sales tax exemption using ST-121.6, Instructions with form.
• Contractors can use sales tax exemption on EZ properties using ST-120.1, Instructions with form.
• Receive sales tax exemption on fuel using FT-500, Instructions with form.

Tax Reduction Credit is available to QEZEs. The credit reduces NYS business taxes in proportion to employment increase and presence in the Empire Zone.

• Tax Form IT-604, Instructions for IT-604.
• Tax Form CT-604, Instructions for CT-604.

Real Property Tax Credit may be claimed by a QEZE that pays local property tax on property in the Empire Zone. The credit is based on the employment and/or investment. The benefit period of the credit is based on when the business becomes Empire Zone certified.

• Tax Form IT-606, Instructions for IT-606.
• Tax Form CT-606, Instructions for CT-606.

Please refer to NYS Tax and Finance for the most up-to-date information on the Empire Zone program and tax forms.

You may also contact EZ staff with any questions regarding the credits and eligibility.