Zone capital credits are a provision of the General Municipal Law Article 18-B, Section 964 amended in 1994.  Regulations governing these credits are located in 5 NYCRR Chapter II Economic Development Zones, Part 13 and 14.

The purpose of this provision is to stimulate economic activity in an Empire Zone by granting each zone a $2.5 million allocation of New York State tax credits.  These credits may be used by zones to encourage such economic activity by offering a 25% tax credit against New York State franchise taxes or personal income taxes for investments and contributions in the following categories:

• Direct Equity investments in Empire Zone certified businesses; and
• Contributions of money to approved Community Development Projects.