THE MANY INCENTIVES OF EMPIRE ZONES

The Empire Zone Program is a program targeted to attract and encourage businesses to grow in 52 of the state's distressed areas. Under Governor George E. Pataki's leadership, this program has spurred investment and created thousands of new jobs across the state. Empire Zones offer abundant vacant land, existing prime industrial and commercial buildings, skilled workers, and ample power and water. Locating in an Empire Zone in the Town of Union (includes the Villages of Endicott and Johnson City) may be the perfect choice for your company to start or to expand too.

Businesses located in the Empire Zone (EZ) may qualify for the following benefits.

WAGE TAX CREDIT (WTC)

A wage tax credit for up to five consecutive years for hiring full-time employees in newly created jobs. For employees in special targeted groups, this credit equals $3,000 a year, with a credit of $1,500 a year for all other new hires.

NEW COMPANIES TO NY

New Companies are entitled to a 50% cash refund of the unused credits for both the WTC and the ITC.

ZONE CAPITAL CREDIT

For investors: A 25% tax credit against personal or corporate income taxes is available for the contribution or purchase of shares in a zone capital corporation; or for a direct equity in a certified zone business; or for contributions to approved community development projects within Empire Zones.

For Empire Zone Certified Businesses: Loans for up to 15 years are available for venture capital, equipment or real estate acquisition. Low interest loans are also available through the Town of Union Local Development Corporation (Town of Union Incentive Program).

SALES TAX REFUND

Purchase of building materials to be used in connection with commercial or industrial real property located in Empire Zones are eligible for a refund of both N.Y.S. and county sales taxes paid.

Sales Tax Exemption: Applies to all tangible property purchased for your business, including office supplies, computers as well as company vehicle. Exemption certificate issued annually if employment is retained or increased in the Zone.

Real Property Credit: New York State tax credit. Based on number of jobs created or retained in the Zone and in the State and the amount of real property taxes paid in the Zone and in the State.

Tax reduction Tax Credit: New York State tax credit. Base on number of jobs created or retained, the company's assets in the Zone and in New York State, as well as the income taxes owned by the company.

UTILITY RATE SAVINGS

New York State Electric & Gas (NYSEG) offers special reduced electric and gas rates which may be available to businesses that locate or expand operations in a Empire Zone. Rate reduction applies to added electric load only.

PROPERTY TAX ABATEMENT - 485(e)

As a result of new construction or building improvements, a 100% abatement on increased assessment is available for seven years. This incentive applies to Empire Zone properties in the Town of Union, Endicott, and Johnson City.

INVESTMENT TAX CREDIT (ITC)

This credit is available for the purchase of production property and equipment. The credit is 10% under the corporate franchise tax and 8% for personal income tax. An additional Employment Incentive Credit is also available to corporations which create new employment. This credit equals 30% of the ITC for each of the following three years in which the investment was made.

VERIZON DISCOUNT

A 5% monthly phone discount on basic service and regional calls is available to certified Empire Zone businesses.

TECHNICAL ASSISTANCE

We are staffed with professionals, ready and qualified to provide assistance to businesses locating or expanding in the zone.

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