Real Property Tax Credit

A Qualified Empire Zone Enterprise (QEZE) is eligible for a credit for local property taxes. The credit is applied against the New York State (NYS) business corporate taxes, personal income taxes, banking corporation taxes, and insurance corporation taxes. The credit is available only if the QEZE is the owner of the property and creates jobs. The property taxes paid to the locality and school district are claimed as a credit or a refund. In certain situations, tenants may qualify if paying the property taxes. Please contact EZ staff to discuss eligibility for tenants.

The QEZE real property tax credit may reduce the business' tax liability below the alternative minimum, or the fixed dollar minimum, to zero. Excess credits may be returned to the QEZE as a cash refund in the year they were earned.

For companies certified prior to April 1, 2005, the tax credit is based on a formula that is the product of three factors:

• The percentage increase in employment in Empire Zones over the test year.
• The amount of real property taxes.
• The benefit factor based on the 15-year credit schedule.

For businesses certified on or after August 1, 2002 but before April 1, 2005, the credit is subject to a limitation of either $10,000 per job created or 10% of the cost or other basis of the property, times the percent occupancy.

For companies certified on or after April 1, 2005, the real property tax credit is calculated using wages and benefits of new employees or a percentage of the capital investment. There is also a limitation on the amount of the actual credit. Since this calculation varies depending on the location and type of the business, please contact EZ staff for more information.