In 1986, New York State’s Empire State Development, working in cooperation with local governments, created the Empire Zone (EZ) economic development program to stimulate economic growth. Within Chemung County, an area has been designated as the Elmira Empire Zone.
New or expanding businesses in the Elmira EZ are eligible to receive EZ benefits if they invest in the expansion of a facility and/or create new jobs or prevent the loss of existing jobs. EZ benefits include the following:
Tax Reduction Tax Credit – is applied against business corporate taxes, personal income taxes, banking corporation taxes or insurance corporation taxes. The credit is computed by formula based on the numbers of jobs created, the company's assets in the Zone and in the State, and the income taxes owed by the company. The credit can eliminate the companies NYS Income Tax Liability. This credit is available for a 10-year period.
Real Property Tax Credit - is applied against business corporate taxes, personal income taxes, banking corporation taxes or insurance corporation taxes. The credit is computed by formula based on the numbers of jobs created, wages and benefits paid, capital investment, and the real property taxes paid on property in the Zone. The credit is refundable once the company’s NYS Tax Liability is eliminated. This credit is available for a 10-year period.
Sales Tax Exemption from the 4% NYS sales and uses taxes for tangible personal property and services sold to a qualified business is available. A company must maintain or increase employment in the Zone and in the State in the year they are claiming the credit. The company must also register with the NYS Department of Taxation & Finance and be issued an exemption certificate. The certificate is valid for a 10-year period as long as the business meets or exceeds its base year employment number.
Manufacturing
Wage Tax Credit for up to five years for hiring full-time employees in newly created jobs. For employees in targeted groups this credit equals $3,000 a year, with a credit of $1,500 a year for all other new hires.
Investment Tax Credit of up to 10% for the construction, acquisition and/or renovation of facilities and production equipment for manufacturing, industrial waste treatment and research & development operations.
Employment Incentive Credit is directly related to the Investment Tax Credit (ITC), and allows an additional 3% in each of the three years following the year(s) in which an ITC is taken. To receive this credit the Zone business must employ at least 101% of the average number of people employed during the previous year.
Sales Tax Credit of the full 8% for purchases of building materials used in connection with industrial or commercial property.
NYSEG Discounts on electricity and gas are available to EZ businesses.
Verizon Discount of 5% on intrastate calls is provided for EZ businesses.
Service/Commercial
Wage Tax Credit for up to five years for hiring full-time employees in newly created jobs. For employees in targeted groups this credit equals $1,500 a year, with a credit of $750 a year for all other new hires.
Sales Tax Credit of the full 8% for purchases of building materials used in connection with industrial or commercial property.
NYSEG Discounts on electricity and gas are available to EZ businesses.
Verizon Discount of 5% on intrastate calls is provided for EZ businesses.
Retail
Wage Tax Credit for up to five years for hiring full-time employees in newly created jobs. For employees in targeted groups this credit equals $3,000 a year, with a credit of $1,500 a year for all other new hires.
NYSEG Discounts on electricity and gas are available to EZ businesses.
Verizon Discount of 5% on intrastate calls is provided for EZ businesses.
Elmira Empire Zone Tax Forms
