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For additional information about a specific permit, license, tax, or incentive,
please call 311 and ask for the issuing Agency.
For assistance using NYC Business Express, visit our Help page,
email us, or call 311 and ask for NYC Business Express.
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Empire Zone Investment Tax Credit |
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The New York State Empire Zone (EZ) Program offers an array of incentives including tax credits and utility discounts in 11 New York City Empire Zones. Not all incentives are available for all business types and each may have different qualifying criteria. Empire Zone Coordinators are available in each zone to assist in determining eligibility.
Investment Tax Credit
The Investment Tax Credit (ITC) is available to companies making an investment in depreciable property and/or equipment used in manufacturing, processing, assembly, R&D or financial institutions. The credit equals 10% under the corporate franchise tax and 8% for personal income tax filers of the eligible investment. Unused credits can be carried forward indefinitely and new businesses are eligible for a 50% refund of unused credits.
To claim the ITC, firms must pass an employment test. Typically, a company’s current number of employees must exceed its average number of employees for the year(s) prior to the year of certification.
An additional 3-year Employment Incentive Credit equal to 30% of the investment tax credit is available. Detailed information on the Employment Tax Credit is available under Links to Additional Information below.
Businesses must be located in an Empire Zone or qualify as a regionally significant project, and must become zone certified. Zone Coordinators are available to assist businesses determine if they qualify for zone certification.
New York City Empire Zones include the following areas:
• Bronx: Hunts Point and Port Morris
• Brooklyn: East Brooklyn, North Brooklyn/ Brooklyn Navy Yard, and Southwest Brooklyn
• Manhattan: Chinatown and East Harlem
• Queens: Far Rockaway and South Jamaica
• Staten Island: North Shore and West Shore
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1.
Businesses must be located in an Empire Zone. As such, the business’s project must be consistent with the criteria stated in the Zone’s local development plan created by the local Zone Administrative Board – which serves as the zone community’s business plan. Changes to local Empire Zone business certification and boundaries start at the local level. Therefore, all businesses must contact the local Zone Coordinator to determine if the business meets State and local qualifications (see Links to Additional Information, Maps of Empire Zones, and Local Zone Coordinators above, for a list of all NYC Zone Coordinators).
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Designate a contact person at the business who will be responsible for ensuring compliance with program administrative requirements and communication with the local Zone Coordinator, and Departments of Economic Development and Labor. This should be a general executive officer or employee of the company and not an accountant, consultant, or other third party representative.
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3.
The business must be EZ-certified prior to June 30, 2011.
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Businesses must increase or maintain employment in the Zone and in the State in the year they are qualifying, based on an average employment number from the past 4 year(s) prior to certification. Local EZ coordinators can assist businesses in determining qualification based on employment.
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Applicants must know the business’s North American Industrial Classification System (NAICS) code. North American Industrial Classification System (NAICS) code. NAICS codes can be found under Links to Additional Materials, above, or by calling 1-800-HIRE-992.
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Federal Employment Identification Number (FEIN). This is the business’ taxpayer identification number, and is required if the applicant is a sole-proprietorship and has employees at the time of application or projects hiring employees in the near future. Businesses can apply for a FEIN online via Links to Additional Materials (Federal Employment Identification Number Information and Applications), above (Form SS-4).
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Unemployment Insurance Registration Number (UI) is assigned when the business registered with the Department of Labor, Unemployment Division. The UI number may be obtained from the Department of Labor, Unemployment Division at (518) 485-8589 or 1-888-889-8810.
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Worker’s Compensation Policy Number (WCI) is the Workers’ Compensation insurance policy number. If hiring has already occurred, the policy must be in effect. Additional information can be found by contacting the Workers’ Compensation Board at (518) 474-6967 or at via Links to Additional Information above.
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The Disability Insurance Policy Number (DI) is the Disability benefits insurance policy number. If hiring has already occurred, the policy must be in effect. For further information, call 1-800-353-3092.
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A professional employment organization (PEO) or common paymaster’s federal taxpayer identification number, unemployment insurance registration number, or workers’ compensation or disability insurance policy may cover the applicant. If any of the retained jobs or new jobs, created or projected, will be for leased employees through a PEO or common paymaster, complete and attach form EZ-3, available through local Zone Coordinators.
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In addition to the standard portfolio of benefits available to certified firms in Empire Zones, an additional set of benefits are available for Qualified Empire Zone Enterprises (QEZE). To receive QEZE enhanced zone benefits, a business must be zone certified and must pass additional tests based on the business’ employment history and operations. Local Zone Coordinators can assist firms in determining QEZE eligibility (see Links to Additional Information under Qualified Empire Zone Enterprises (QEZE), above).
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This page provides general information only. The information does not address all relevant regulatory requirements of City, State or Federal Agencies, nor does it address requirements with which the business must comply on an ongoing basis. It is the business owner's responsibility to meet all City, State and Federal requirements. Failure to comply with all applicable laws and regulations may result in fines or in the suspension and/or revocation of licenses or permits, or other penalties as allowed by law.
Please note that this information is not legal advice; you can only obtain legal advice from a lawyer. For more information or assistance, please contact the issuing Agency, using the contact information above, or call 311 (or 212-NEW-YORK if outside of New York City).
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