New York State created its Empire Zone (EZ), formerly Economic Development Zone, program to encourage business and property investment in certain designated areas. The program was designed to assist the expansion of existing businesses and the start-up of new businesses, to foster the creation of jobs, and to enhance the property tax base, by providing additional financial and tax incentives specifically targeted to those zones.

The Kingston/Ulster EZ was initially designated July 27, 1994 and through several boundary revisions now has subzones in portions of the City of Kingston and the Towns of Ulster, Saugerties and Wawarsing.

The purpose of the Empire Zone is to create and retain jobs and induce investment in properties within the Zone. Consequently, the EZ has targeted firms looking to expand their operations, at businesses looking to provide services and assistance to residents within the zone, and at business start-ups.

The EZ financial and tax incentives are also intended to make sure that businesses from other states and overseas consider Ulster County as a candidate for their relocation or expansion plans, take another and deeper look at the assets that Kingston/Ulster has to offer, and at locations within the zone as an optimal site for their operations.

Those assets include an available labor pool that contains highly educated and highly skilled workers. An estimated 20,000 workers commute to jobs outside the area and would be receptive to local employment opportunities. Other assets include a reasonable cost of doing businesses, easy access to 55% of the US and Canadian market and highly supportive local governments.