Greater Norwich Empire Zone
Empire Zone Certification Application
Empire Zone Certification Application Instructions

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Summary of State and Local Benefits

Real Property Tax Credit (QEZE-Qualified EZ Enterprise)

• Available to an Empire Zone (EZ) and QEZE Certified businesses.
• Applied against business corporate taxes, personal income taxes, banking corporation taxes or insurance corporation taxes.
• 25% of total wages and benefits to net new employees, capped at $10,000 per new job (wages/benefits over $40,000 are excluded) or 10% of the federal basis of the RP times the greater of the % of such property occupied and used or the % of such cost or other basis attributable to construction, rehab, or expansion
• The credit may be claimed for a 10-year period.
• PILOT payments may be considered.
• Businesses certified on or after 8/1/02 are subject to a cap based on new jobs created or federal tax basis.
• This credit may reduce the company’s tax liability to below the alternative minimum tax or the fixed dollar minimum. Unused credits may be obtained as a CASH REFUND in the year in which they were earned.

Tax Reduction Credit (QEZE)

• Available to an Empire Zone (EZ) and QEZE Certified businesses.
• Applied against business corporate taxes, personal income taxes, banking corporation taxes or insurance corporation taxes.
• Credit is computed by formula based on number of jobs created, the company’s assets located in the zone and in the State and the income taxes owed by the company.
• The credit may be claimed for a 10-year period.
• This credit may reduce the company’s income tax liability to ZERO-eliminating the alternative minimum tax and the fixed dollar minimum. There is no carryover or refund provision with this credit.

Sales Tax Exemption (QEZE)

• Available to Empire Zone (EZ) Certified businesses that are Qualified Empire Zone Enterprises (QEZE). The company “self-determines” if it is eligible for the exemption based upon meeting the Employment Test on an annual basis.
• Exempt from the 4% New York State sales and use tax for tangible personal property and services sold to qualified businesses.
• A certificate is issued once and may be used throughout the 10-year benefit period.
• Full REFUND from State AND Local sales and use taxes on tangible personal property used in constructing or rehabilitating industrial and commercial buildings within the zone.

Wage Tax Credits

• Available to an Empire Zone (EZ) Certified business, which creates new employment at its zone facility.
• The credit equals $1500 for each new job created.
• If that position is filled with a targeted worker the credit doubles to $3000 for that worker.
• Credit increases $500 for employees with wages in excess of $40,000
• The credit may be taken for up to 5 consecutive years from the date of original certification.
• A business certified prior to the sunset of the program would be allowed up to four consecutive years of the credit following the expiration of the Zone. However, the Credit cannot be claimed for any new hires after the sunset date (June 30th, 2011).

Real Property Tax Abatement

• All municipalities and school districts within the zone have agreed to utilize Section 485-e of the Real Property Tax Law, which allows for abatement in increases in real property taxes, which result from the construction or improvement to property in the zone.
• Available to ALL PROPERTY OWNERS within the Greater Norwich Empire Zone without regard to certification.
• 10-year Tax Exemption
  100% during the first seven years. 75% during the eighth year.
  50% during the ninth year. 25% during the tenth year

Zone Capital Credit

• The 25% credit is also available for direct equity investment in a certified zone business; or for contributions to approved community development projects.
• Lifetime cap of $300,000 ($100,000 per category).
• 50% of tax liability limitation (may carryover any unused credit).

Investment Tax Credits

• Available to an Empire Zone (EZ) certified business, which purchases or builds property in the zone.
• The credit may be claimed each time qualified property is acquired or built.
  10% for corporate investment in tangible property.
  8% for personal income tax filers.
• Employment Incentive Credit
  • Available to businesses who qualify for Investment Tax Credit and create new employment.
  • The credit equals 30% of the Investment Tax Credit for the 3 consecutive years following the year the Investment Tax Credit is claimed.

Utility Rate Reductions

• Special reduced rates on electricity, gas, water and telephone usage are available to zone certified businesses through New York State Electric & Gas, the City of Norwich and Frontier Communications respectively.
• Contacts for these utilities are:
  NYSEG-Gretchen J. McFee (607) 334-4248 x459
  City of Norwich Water Dept (607) 334-1250
  Frontier Communications-Sonya Zinner 1(800) 921-8102 x6259

Statewide Zone Capital Corporation

• Empire Zone certified businesses may obtain low interest loan funds for working capital, equipment acquisition and real estate purchases.

Linked Deposit Program

• 3% interest rate reduction on commercial loans with participating lenders

Revolving Loan Funds and Reduced Permit and Bond Fees

• Local and regional special low-interest revolving loan funds are available to eligible applicants.
• Participating entities include, but are not limited to:
  • The City of Norwich -Southern Tier East
  • Chenango County Area Corporation -Chenango County Government
  • NYBDC
• Chenango County IDA has reduced its normal Industrial Revenue Bond issuance fee from 1% of the bond amount to 0.5% of the bond amount.
• Both the City of Norwich and the County of Chenango have reduced building permit fees for zone certified businesses.

Priority Attention

• State and local agencies that have a role in economic development have developed special programs and services targeted towards Empire Zones and will expedite applications from zone businesses.

1. Zone Coordinator Introduction and Empire Zone Orientation meeting.
   
2. The Zone Coordinator reviews application for business certification to ensure completion.
   
3. The Zone Coordinator performs a cost-benefit analysis
   
4. The Zone Coordinator makes recommendation to the Zone Administration Board and Zone Certifying Officer
   
5. The Zone Administration Board Chair and Zone Certifying Officer signs & dates the application. (When eligibility is verified, this becomes the priority date of actual certification.)
   
6. The Zone Coordinator sends the application to the State Dept. of Labor and Dept. of Economic Development.
   
7. The State Dept. of Labor reviews the application for any outstanding claims and the Commissioner of Labor signs off on it.
   
8. The State Dept. of Labor then forwards the application to the Dept. of Economic Development.
   
9. The Dept. of Economic Development issues a Certificate of Eligibility and forwards it to the Zone Coordinator.
   
10. The Zone Certifying Officer signs & dates the certificate.
    
11. The Zone Coordinator presents the business with the Empire Zone Certified Business Certificate and mails copies to local utility companies.