Program
Benefits
Requirements
To be eligible for benefits, your company must be
located in the Watertown Empire Zone and must become a Empire Zone certified
company. Follow the links below for more information.
Definitions
"New employees" are those hired after
a business has received Empire Zone Certification.
"Employment increase
factor" is the number of new employees divided by total employment.
Example: A company has 10 current employees, becomes certified and hires an
additional 5 new positions. Total employment is 15, "new
employment" is 5, so the employment increase factor is 5/15 or 33%.
"QEZE" - Qualified
Empire Zone Enterprise. This is a company that has received Empire Zone
Certification and has maintained or increased employment in the zone.
"Base Utility Usage"
- This is the amount of a given utility a company consumed prior to becoming
an Empire Zone certified company.
Benefits
Tax
Reduction Credit - The QEZE Tax Reduction Credit allows for a credit
against New York State Income Tax. The Tax Reduction Credit is available to
certified businesses for 10 years and is the product of multiple factors.
The most important factor is
the "employment increase factor", explained above. In the
example given, the company would have its NYS income taxes reduced by up to
33%. For a new business with zero employment at
certification, the credit could reduce the state income tax burden to zero.
Other factors.
Wage
Tax Credit - This New York State income tax credit is generally $1,500
per "new employee" per year for 5 years.
-
However, "targeted
employees" (JTPA participants, recipients of public assistance, honorably
discharged members of the armed services, etc.) paid at least 135% of minimum
wage would qualify for a wage tax credit of $3,000.
-
Furthermore, any
"new" employee earning $40,000 per year or more would qualify the
for an additional $500 worth of wage tax credits. In most cases, the
total benefit would be $2,000 per new employee per year or $3,500 in the case
of a new "targeted employee."
-
The credit is used to reduce a
business' NYS business income taxes. New businesses that do not owe NYS
taxes can receive a cash refund of up to 50% of the credits and the remainder
is carried over until utilized.
Credit
Against Real Property Taxes - Up to 100% of property taxes paid by the QEZE to the local
municipal entities are eligible for a credit against NYS income taxes.
This credit if fully refundable, which means that a QEZE can reduce its tax
burden below zero and receive a refund payment from New York
State.
The credit against real
property taxes is the maximum of:
-
25% of wages and benefits paid
to new employees, with a maximum benefit of $10,000 per employee, or
-
A formula related to the
increase in the federal basis of the property. This is generally
applicable for properties that have been significantly improved.
Payments-in-lieu-of-tax agreements are considered "eligible real
property taxes”, but the PILOT must be approved by the Office of Real
Property Tax Services.
NiMO
Rate Reductions -
Niagara Mohawk Power Corporation offers businesses who locate or expand in an
Empire Zone up to ten years of deep discounts on increased electricity and
natural gas consumption. The discount only applies to consumption above
the "Base Utility Usage", explained above. Once certified,
businesses can contact NiMO at 1-800-932-0301 to set this up.
Verizon
Rate Reductions - 5% rate reduction for intrastate-intraLATA charges
for services provided by Verizon. The discount only applies to
consumption above the "Base Utility Usage", explained above.
Sales
Tax Refunds - Sales tax paid on the
purchase of any building materials used in construction or renovation of a
property located within the Empire Zone can be refunded to the company.
Sales
Tax Exemption - The sales tax exemption applies to most purchases made
by a Empire Zone certified business (unlike the refund, above, that only
applies to construction material). The exemption covers the
majority of purchases for a ten year period, but only exempts the purchaser
from the State portion of the sales tax.
Investment
Tax Credit - The total effect of this benefit is a 19% return to the company on its original investment
in production equipment (10% up
front, 3% in each of the following three years). This benefit only
applies to manufacturers.
Zone
Capital Tax Credits - Economic Development Zone Capital Credits can be
issued by the Watertown Empire Zone for qualified new investments or
contributions to an approved project in the zone. They can be used by a
business to attract new capital investment into a business or by a non-profit
to increase the tax incentive donors have access to for their contributions.
Public Financing Programs
- Four very beneficial public financing program opportunities currently
available within Jefferson County. For more information regarding project
eligibility and application process, please contact the agency listed for each
financing program.
