 WAGE TAX CREDIT A Wage Tax Credit is available to zone certified businesses which create employment in their zone facility. The credit is $1,500 for each job created, and if the job is filled with a targeted worker earning 135% of minimum wage the credit is $3,000. The credit may be taken for up to five consecutive years. INVESTMENT TAX CREDIT and EMPLOYMENT INCENTIVE CREDIT An Investment Tax Credit is available to zone certified businesses which purchases equipment or facilities in the zone. The credit is 10% for a corporation and 8% for a personal income tax filer. The credit may be claimed each time qualifies property is acquired or build. An Employment Incentive Credit is also available in the three years following the Investment Tax Credit for a business which increases its employment by at least 1% per year. The credit equals 30% of the Investment Tax Credit. REAL PROPERTY TAX ABATEMENT A Real Property Tax Abatement program, referred to as Section 485e, allow for an exemption against increased property tax due to construction or improvement. The exemption applies to any increased taxes caused by an improvement to a property, and is in effect through March 1, 2004. Exemptions applied for between now and June 2002 are eligible for a 75% abatement, between July 2002 and June 2003 a 50% abatement, and between July 2003 and March 2004 a 25% abatement. The abatement is available to commercial, industrial, and residential properties. The abatement application needs to be filed with the municipal assessor. SALES TAX REFUND (building materials) A refund of 7.75% of State and County sales tax is available on the purchase of building materials used in the construction or renovation of industrial or commercial property located in the zone. Buildings used exclusively for retail do not qualify. TAX REDUCTION TAX CREDIT A Tax Reduction Tax Credit which is applied against business corporate taxes, personal income taxes, banking corporation taxes or insurance corporation taxes. The credit is computed by a formula based on the number of jobs created, the company’s assets in the Zone and in the State, and the income taxes owed by the company. This credit is for a 14-year period, 10 years at 100%, decreasing 20% each year thereafter. REAL PROPERTY TAX CREDIT Real Property Tax Credit is applied against business corporate taxes, personal income taxes, banking corporation taxes or insurance corporation taxes. The credit is computed by a formula based on the number of jobs created and the real property taxes paid on property in the zone. This credit is for a 14-year period, 10 years at 100%, decreasing 20% each year thereafter. SALES TAX EXEMPTION A Sales Tax Exemption from the NYS Sales and Use Tax for tangible personal property and services sold to a qualified business. A company must register with the NYS Department of Taxation & Finance and be issued an exemption certificate. The certificate is valid for a 10-year period as long as the business meets or exceeds its base year employment number. LOCAL INCENTIVES Planning and development permit fees are waived by the City of Kingston and Towns of Ulster, Saugerties and Wawarsing for certified businesses located in the Kingston-Ulster Empire Zone. In addition, there are municipal bus fare discounts for EZ residents and certified employees The Kingston-Ulster Empire Zone Office can provide information regarding incentive rates for telephone service for certified companies within the zone. ZONE CAPITAL CREDITS FOR COMMUNITY DEVELOPMENT PROJECTS Contributions of money to approved community development projects serving zone residents and businesses may be eligible for Community Development Project Credits. Sponsors of such projects may use the credits to enhance fund-raising activities. Eligible projects selected for this program can enhance their fund raising efforts by utilizing a 25% New York State personal or franchise tax credit available to project donors. As an example, if someone makes a $1,000 donation toward a designated project, they will be eligible to use a $250 tax credit toward New York State income or franchise taxes owed in addition to deducting the $1,000 donation amount from their federal taxable income. Contributions of $500 or more may be eligible for the credit. ZONE CAPITAL CREDITS FOR DIRECT EQUITY INVESTMENTS Direct Equity Investment Credits provide a zone certified business a competitive advantage when seeking new investors or partners to expand its business. The business may offer a potential investor an immediate 25% NYS tax credit for the amount of his/her investment into the business. This is in addition to any return-on-investment offerings the business and investor may otherwise negotiate. Allocation of credits need to be approved by the Zone Administrative Board prior to the investment being made. STATEWIDE ZONE CAPITAL CORPORATIONS (SZCC) The SZCC, is a privately owned fund whose capital will be used to promote the expansion and growth of the new and existing businesses within New York’s Empire Zones. SZCC will complement conventional bank financing by partnering with banks to provide credit to businesses. Loans/equity investments range from $30,000 to $300,000 (exceptions to $500,000) and SZCC financing may represent only 50% of the total financing requested. A minimum down payment of 10% is required of the zone certified business. Interest rates are currently 5% for the first three years of a loan, and 7% for the remaining term, which range from 3 to 15 years. Collateral will be sought to secure all SZCC financing. Funding allocation will be based on the generation and retention of jobs and funding will be limited to $200,000 per business. |