The Watertown Empire Zone Benefits and Incentives

 











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Wage Tax Credit • Sales Tax Refunds • Tax Reduction Credit • Investment Tax Credit
Zone Capital Tax Credits • Sales Tax Exemption


Zone Capital Tax Credit

The tax law regarding franchise taxes and personal income tax was amended, for tax years beginning on or after 1/1/94, to allow the Empire Zone Capital Credit for qualified investments or contributions to an Empire Zone Capital Corporation, qualified investments in Certified Empire Zone Businesses and contributions of money to certain community development projects.

The new Economic Development Zone Capital Tax Credit is 25% of the following investments and contributions certified by the Commissioner of Economic Development.

  • Qualified investments made in, or contributions in the form of donations made to, one or more Economic Development Zone Capital Corporations.
  • Qualified investments in Certified Zone Businesses that during the 12-month period immediately preceding the month in which the investments were made employed full-time within the State an average number of individuals of 250 or fewer.
  • Contribution of money to community development projects as defined by regulations promulgated by the Commissioner of Economic Development.

Eligibility Criteria

  1. Qualified investment means:
    1. The contribution of property to a corporation for original issue capital stock or other ownership interest.
    2. The contribution of property to a partnership for partnership interest.
    3. The contribution of property to any other type of business entity for an ownership interest.
  2. Total amount of credit allowable to a taxpayer for all years taken in aggregate, may not exceed $300,000.00, and may not exceed $100,000.00 with respect to the investments and contributions described above.
  3. For Franchise Tax the credit or carryover of the credit may not reduce the tax to an amount less than the tax due on the minimum taxable income base or fixed dollar amount, whichever is greater.
  4. For Personal Income Tax, the credit or carryover may not exceed the tax impose pursuant to section 601, less the household credit, the credit for certain household and dependent care service necessary for gainful employment, the credit for income tax paid to another state, and the credit for a resident or nonresident trust beneficiary receiving an accumulation distribution.