Sales Tax Refund (building materials only): A claim may be made for a refund of both the State (4%) and Broome County (4%) sales tax paid on purchases of building materials only used in renovation and/or new construction of commercial or industrial buildings in the zone. The entity that makes the purchases is the entity that must file the claim. To learn what other Counties in NYS allow for this refund, please see Publication 718-EZ.
Wage Tax Credit: A wage tax credit is available for up to five consecutive years for each newly created full-time or full-time equivalent job. The credit is up to $1500 for each new employee and up to $3000 for each new targeted employee.
Investment Tax Credit: This credit is available to companies making an investment in the zone for depreciable property and/or equipment principally used in manufacturing, processing, assembly, industrial waste treatment or air pollution-control facilities, R&D or financial institutions. 10% of the eligible investment can be taken for credit (8% for personal income tax filers including S corps and partnerships).
o An additional Employment Incentive Credit equal to 30% of the investment tax credit is available for each of the three years after the Investment Tax Credit (ITC) is claimed if employment is increased when the investment is made.
For both the Investment Tax Credit and the Employment Incentive Credit use the following NYS tax form:
QEZE Sales Tax Benefit: Empire Zone businesses, certified prior to April 1, 2009, that have been issued both a Retention Certificate and Form DTF-81, Qualified Empire Zone Enterprise (QEZE) Sales Tax Certification, may apply for a refund or credit of the State's portion of the sales tax (4%) paid on nearly all tangible personal property and services that are directly or predominantly used or consumed by a QEZE in an Empire Zone where the QEZE has qualified for benefits. Claims for a refund or credit can only be made once a sales tax quarter, and those QEZEs filing a claim must also pass the employment test for the tax year when the refund or credit is claimed.
- Tax Form AU-12, Instructions
- Employment Test Worksheet AU-12.1 (for businesses EZ certified before April 1, 2005)
- Employment Test Worksheet AU-12.2 (for businesses EZ certified between April 1, 2005 and April 1, 2009)
For a QEZE certified on or after April 1, 2009, a refund or credit of taxes paid will only be permitted if the local municipality elects to provide a refund or credit of its sales tax as well. Broome County has not consented to the refund of its sales tax on taxable purchases of tangible personal property and services. Therefore, the QEZE sales tax refund or credit is not available for Broome County businesses Empire Zone certified on or after April 1, 2009.
QEZE Real Property Tax Credit: A Qualified Empire Zone Enterprise (QEZE) may claim a credit for real property taxes paid based on a formula that considers job creation, wages and benefits or investments made in the Zone. Further limitations may apply depending on zone and/or business type. PILOTS are eligible if held directly by the QEZE (not a holding company). Lessees may qualify if the lease agreement specifically states the lessee is responsible for paying the real property taxes, and the lessee can prove payment with a receipt from the taxing authority. The credit is available for 10 years and unused credits may be obtained as a cash refund in the year they were earned. For businesses EZ certified on or after April 1, 2009, the real property tax credit will be 75% of the amount calculated pursuant to the statute.
QEZE Tax Reduction Tax Credit: A Qualified Empire Zone Enterprise (QEZE) may claim a credit against New York State (NYS) corporate, personal income, banking, or insurance corporation taxes based on employment increase. The credit is computed by formula based on four factors: the percent employment increase in Zone; the Zone allocation factor; the income taxes owed by the company; the benefit factor.
The tax reduction credit may reduce the company's tax liability to zero if the company is located entirely within NYS Empire Zones, or as low as the fixed dollar minimum if located both inside and outside the Zones. There is no carry-over or refund provision with this credit.
Abatement Program
485-e Real Property Tax Abatement: The 485-e Real Property Tax Abatement allows for an abatement of increases in county, city, town, village and school real property taxes that result from the construction or improvement to real property located in an Empire Zone. This is a 10-year abatement program where the abatement is 100% for the first 7 years, 75% in year eight, 50% in year nine, and 25% in year ten.
Empire Zone certification is not a requirement of this benefit. The application for the 485-e Real Property Tax Abatement must be filed with the assessor within one year of the date of completion of the project. The assessor will approve or deny the application for the property tax abatement.
For additional information, please contact the Broome County Empire Zone office or the Assessment Office in your municipality:
- City of Binghamton Assessor's Office: (607) 772-7002 or (607) 772-7038
- Town of Kirkwood Assessor's Office: (607) 775-4493
- Town of Union Assessor's Office: (607) 786-2905