Businesses > Economic Development > Empire Zone > Benefits

City of Albany Empire Zones
Summary of Program Benefits

Wage Tax Credit: Available to companies hiring full-time or full-time equivalent employees in the zone. Credits are available for up to five consecutive years. Credits are $1,500 per employee; for employees in special targeted groups the amount is raised to $3,000 per employee per year. Unused credits can be forwarded indefinitely and new businesses (those that have been taxable for five years or less) are eligible for a 50% refund of unused credits.

Investment Tax Credit: Available to companies making an investment in the zone for depreciable property and/or equipment which is principally used in manufacturing, processing, assembly, industrial waste treatment or air pollution-control facilities, R&D or financial institutions. 10% (8% for personal income tax filers) of the eligible investment can be taken for credit. Unused credits can be forwarded indefinitely and new businesses are eligible for a 50% refund of unused credits.

An additional Employment Incentive Credit equal to 30% of the investment tax credit is available for each of the three years after the Investment Tax Credit (ITC) is claimed if employment is increased when the investment is made. Unused credits can be forwarded indefinitely and new businesses (personal income tax only) are eligible for a 50% refund of unused credits.

Zone Capital Credits: A 25% tax credit is available for personal or corporate income tax payers for eligible investments in certified zone businesses, or contributions to approved community development projects. There is a lifetime limit of $100,000 in zone capital credits per contributor for Community Development Projects and $100,000 lifetime limit in zone capital credits per investor in a Direct Equity Investment project.

NYS Sales Tax Refund: A refund of the State portion (4%) of the sales tax is available for the purchase of building materials used in the construction, expansion or rehabilitation of industrial or commercial property located in a zone. Empire Zone certification is not a requirement to receive this benefit; however, the purchaser must be buying for a property in the zone.

485-e Real Property Tax Abatement: This allows for an abatement of increases in county, town, and school real property taxes, which result from the construction or improvement to real property located in an EZ for a period of up to ten years.  Contact the City of Albany Tax Assessor, Keith McDonald at (518) 434-5155 for more information.

Utility Rate Reduction: Special reduces electric and gas transmission rates may be available through National Grid. Businesses that have at least a 25% load increase at their facility due to start-up or expansion may receive reduced rates.  The benefit is available for ten years. Contact Linda Hill at (518) 433-3691 for more information.

Enhanced Benefits for Qualified Empire Zone Enterprises (QEZE)

To receive Qualified Empire Zone Enterprise (QEZE) enhanced zone benefits, a business must be zone certified under the requirements outlined in the eligibility and certification section and must pass additional tests based on the business’ employment history and operations.

Sales Tax Benefit: A credit or refund from the State portion of the sales tax is available for most goods and services used directly and predominantly in the zone. For businesses certified on or after April 1, 2009, the state portion of the sales tax benefit is only available if counties or municipalities that have imposed local sales tax offer a similar credit or refund of the local sales tax. If a county or municipality offers a similar credit or refund of the local sales tax, such offer would extend to all QEZEs regardless of when they were certified.

Real Property Tax Credit: A credit for real property taxes paid based on a formula that considers job creation, wages and benefits or investments made in the zone. This credit is available for 10 years and unused credits may be obtained as a cash refund in the year they were earned.

Tax Reduction Credit: A credit against tax equal to a percentage of income taxes attributable to the zone enterprise based on its employment growth in the zone. This credit is available for 10 years and can reduce a company’s tax liability to zero – eliminating the alternative minimum and fixed dollar minimum tax.