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| How were the EZ boundaries determined? The Kingston-Ulster Empire Zone is limited to a two square mile area, including sub-zones. With this limit on the size of the zone it was not possible to include all of the property in the participating municipalities. To best utilize the available area, the zone encompasses primarily commercial and industrially zoned property. [return to top] How long will the benefits last? Established in July 1994, with a ten-year term, the Kingston-Ulster Empire Zone is currently scheduled to expire July 31, 2004. Pending New York State Legislation, the zone may be extended to December 31, 2020. [return to top] Does the property tax abatement expire in 2004 or will we get abatements for the ten years following the new construction/improvement? The property tax abatement program expires in the year 2004. The tax abatement program applies to all exemptions applied for before March 1, 2004. [return to top] Do I need to be certified in order to apply for Real Property Tax Abatement? No, but application for the exemption must be filed with the assessor's office within one year of the completion of the project and before March 1 (Ulster County's Taxable Status date). The Real Property Tax Abatement and the Sales Tax Credit (on building materials etc. used in any improvements) are available to property owners in the Zone and it is not necessary to be certified in order to apply for the appropriate credit(s). [return to top] What happens to the Tax Abatement program if the property is revalued after it has been modified? In the event that a general property revaluation is undertaken by the municipality, the property will still be eligible for the tax exemption, but additional taxes due against the original assessment would need to be paid. [return to top] Does the property tax abatement apply to improvements to meet ADA requirements? External improvements affixed to the main structure, such as a ramp for wheelchair access, are eligible for the property tax abatement program, if an increase in property is caused. [return to top] Does it also apply to external improvements, such as paving of parking areas, facade improvements, better exterior lighting? Yes, but only those external improvements that become an integral part of the property are eligible for the property tax abatement program. [return to top] Is manufacturing the only category of property included in the real property tax abatement program? No, virtually every type of property is included. For example, the abatement will apply to distribution facilities, professional offices, medical and dental facilities, retail and retail food service establishments, hotels, motels and SROs and residential properties. [return to top] I bought a property located in the Zone and am in the process of improving the building, which consists of a retail storefront on the first floor and apartments on the second and third floors. Does this building qualify for the Real Property Tax Abatement? Yes. Within the Zone boundaries, any commercial, industrial or residential properties that are constructed or improved are eligible for the property tax abatement based on the resultant increased assessment. [return to top] If we apply for one EZ incentive, say, the property tax abatement program, are we then precluded for applying for other elements of the overall program on a later date? No. For example, a business that carries out improvements to its business property can secure a property tax abatement as relates to the increase in the assessed value applicable to the improvements only. That does not preclude that same business from subsequently applying for the Wage Tax Credit and Investment Tax Credit if it expands its business by hiring available applicants and/or invests in new machinery and equipment, and meets the other criteria for those programs. [return to top] Does the Wage Tax Credit and Employment Incentive Credit only apply to full-time jobs? No. Provided they meet the criteria of the WTC program, when two or more part-time employees are engaged who have the same title and the same rate of pay and who aggregate at least 35 hours per week, they will be counted as one (1) full-time employee. [return to top] Is retail employment included in the WTC program? Yes. [return to top] Does the WTC and EIC apply only if we take an applicant referred by the local Dept. of Labor? What if we find our own candidates? As long as all other criteria is met, all candidates hired will qualify for the WTC and EIC. A Zone-certified business has agreed to list all job openings with the Dept. of Labor, but is able to recruit applicants in a variety of ways. If it locates an applicant by its own efforts, the firm can hire the candidate and ask the local NYSDOL office to pre-screen and certify the individual if s/he is a targeted applicant for the purposes of the WTC program. [return to top] I completed the Certification application a few weeks ago - why haven't I heard anything? Our Local Certifying Officer reviewed and signed your application. This process usually occurs within 48 hours of the application form being received by the EZ office. We forwarded your application to both the Departments of Labor and Economic Development for their review and approval. Unless there is a question or a problem you won't hear anything until the application is approved. This process usually takes between 10 and 12 weeks. [return to top] In that case, what is the effective date of the Certification? The date the Local Certifying Officer signed and submitted the form to Albany for approval is the effective date of the certification. Although the NYSDOL and NYSDED may take 10-12 weeks to review and approve your application, once approved the date of the local approval is the governing date for claiming benefits, etc. [return to top] So when am I eligible for benefits? Benefits are available to be applied for after you are notified that your business has been fully certified, i.e., both local and state approval has been given. The following table has specifics. [return to top] How do I apply for benefits? Different credits are applied for in different ways. The following table may help as a guide as to where to apply and how to apply.
** For tax years beginning on or after January 1, 2001 [return to top] What is a "QEZE?” Qualified Empire Zone Enterprise (QEZE) is a term used to represent a Zone Certified business that qualifies to apply the new enhanced tax credits: Sales Tax Exemption, Tax Reduction Tax Credit and the Real Property Tax Credit. [return to top] I was certified by ESDC as an EDZ business on July 1, 1999, not as an Empire Zone business. Do I qualify for the new enhanced Zone credits? If certified prior to July 1, 2005, you do not have to be re-certified. You must meet, however, the employment test where the taxpayer's employment must equal or exceed its employment in the base period. [return to top] I operate more than one company in an Empire Zone. Can I certify each company? Yes, providing that each company is a separate tax paying entity and each company possesses a separate and distinct Taxpayer Identification Number or Employer Identification Number (EIN). [return to top] I operate two companies and file NYS tax under one EIN. Do I certify each company? No. You would be eligible to apply for certification for the company that is located within the Empire Zone. The Empire Zone tax credits and exemptions would only be applicable to business activities and tax liability to the business located within the Empire Zone. [return to top] I am already a Zone Certified business. The new enhanced tax credits indicate that I must qualify on an annual basis to access these credits. Does "qualify" mean that I have to be certified again? No. Certification is mostly a one-time occurrence that is expedited through a local Zone Coordinator. Qualify indicates that a Zone Certified business has calculated the employment comparative between the tax year that the company is applying for credits AND a base period or test year. If your accountant determines that your employment comparative equals or exceeds the base period or test year, you ten qualify for the enhanced credits. [return to top] I am a new business to New York. I have no previous employment history. What is my 5-year base period? New businesses that create jobs in New York State will have a base period employment equal to zero (0). Any new business that creates jobs would - in the first and future years - meet the employment test for maintaining or increasing employment. [return to top] I have an existing business in an area of the State of New York that is not in an Empire Zone. I plan to move all my employees and business into an Empire Zone in another part of the State of New York. Will I qualify for the newly enhanced EZ benefits? No. You must maintain your employment average in the area that is outside of an Empire Zone in order to qualify for enhanced Zone benefits inside the Zone. Additionally, you must apply for permission with your current location's municipal officer to access Zone credits prior to your move into the Zone because of your shift in operations. After a public hearing and written approval from the municipal authority where you are closing your operations, you may be eligible to claim the basic Zone benefits and not the enhanced benefits. [return to top] The tax reduction tax credit can bring my tax liability down to $0.00. How do I qualify? A single taxpaying Zone certified business must be located 100% within the Zone. It cannot have any other property or payroll outside the Zone. [return to top] I am a certified Zone business and currently claim the Investment Tax Credit. Will claiming other credits affect my eligibility for the enhanced QEZE credits? Claiming other incentives, such as the Investment Tax Credit, or the Employment Incentive Tax Credit will not affect your eligibility to claim the enhanced QEZE credits. [return to top] What if I am already a certified business? How do I determine whether I am eligible to claim the sales and use tax exemptions on March 1, 2001? You will be eligible to claim the sales and use tax exemptions on March 1, 2001, if your employment number in 2000 (the taxable year immediately preceding the year in which the QEZE is seeking the sales and use tax exemptions) equals or exceeds your employment number in your base period of 1994-1998. [return to top] What if I am a new business in New York State in the year I become certified? Will I qualify as a QEZE? As a new business creating jobs in New York State, you would have a base period of 0. You would, in the first and future years, meet the employment test for maintaining or increasing employment. [return to top] I am a certified Empire Zone business and will qualify under the 5-year base period employment test. When can I start claiming my credits and sales tax exemptions? Credits can be claimed for tax years beginning on or after January 1, 2001. The sales tax exemptions begin March 1, 2001. You must also meet an annual employment test to continue to claim the benefits. [return to top] I qualify to claim the Investment Tax Credit, the Wage Tax Credit, the new Tax Reduction Tax Credit and the new Real Property Tax Credit. What is the ordering of credits on my tax return? Credits that cannot be carried forward are applied first. Refundable credits are applied last. The ordering of the credits for your tax return would be...
Is a QEZE for sales and use tax purposes the same as a QEZE for corporate and income tax purposes? |
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