The Genesee County Empire Zone truly makes it possible for a business to operate virtually tax-free by eliminating New York State business-related income taxes (Tax Reduction Credit, property taxes (Credit for Real Property Taxes) and State sales taxes (Sales Tax Exemption). The extent to which a company receives these benefits is tied closely to its ability to increase its employment base.
A qualifying company in the Genesee County Empire Zone also receives credits on any capital investment made for its manufacturing process (Investment Tax Credit and Employment Incentive Credit), additional credits for new employees hired in the zone (Wage Tax Credit) and significant discounts on its utility rates.
A company begins enjoying Empire Zone benefits as soon as its certification application is approved by Empire State Development and the New York State Department of Labor. The effective date of eligibility will be the date that the local zone certification officer signed the application.
Utility Rate Reductions: Participating utility companies offer rate discounts to certified Empire Zone businesses. In Genesee County, the following utility companies participate in the program: Niagara Mohawk (a National Grid Company), National Fuel, Rochester Gas & Electric and Verizon.
Enhanced Linked Deposit Program: Certified Zone businesses may be eligible for an enhanced Linked Deposit Program. This New York State program offers a rate reduction of 3% (to certified Empire Zone businesses) for 2 years on loans made with participating financial institutions. All of the financial institutions with offices in Genesee County participate in this State program. Please call your financial institution to discuss your qualifications for the program.
| Feature | Benefit | Benefit Period |
|---|---|---|
| Enhanced Empire Zone Benefits: | ||
| Tax Reduction Credit (TRC) | Up to 100% credit towards NYS income tax, based on percentage employment increase. | Years 1-10 = 100% |
| Credit for Real Property Tax (CRPT) | Up to 100% credit/refund of local property taxes based on percentage employment increase. Unused credits may be obtained as a cash refund in the year in which they were earned. | Same as TRC |
| Sales Tax Exemption (STE) | 4.00% New York State exemption for virtually all categories of sales taxable items. | 120 consecutive months following Empire Zone certification providing application for tax exemption is filed. |
| Original Empire Zone Benefits: | ||
| Wage Tax Credit (WTC) | $1,500 or $3,000 per qualified employee per year. Carryover of unused credits is allowed. New business (first 5 years) may claim 50% refund of unused credit as an overpayment tax. | 5 years |
| Investment Tax Credit (ITC) | 8% or 10% tax credit depending on type of legal entity (S/C Corp), applied against capital investments in real property or machinery purchased for manufacturing, financial institutions and other select industry businesses. Carryover of unused credits is permitted. New business may claim 50% refund of unused credit as an overpayment tax. | Year in which the asset is placed in service |
| Employment Incentive Credit (EIC) | 30% of the Investment Tax Credit. Must maintain nin-executive employment at a level of 101% of employment in the year prior to when the ITC was allowed. | Years 2,3, and 4 after ITC |
| Zone Capital Credits | State income tax credits equal to 25% of investment made into Empire Zone company. Tax credits limited to $100,000 per tax payer. | Year in which investment is made |
