 The New York State Empire Zone Program has proven to be one of Plattsburgh's and Clinton County's greatest assets. In addition to the area's impressive and available workforce and an overall business-friendly atmosphere, The Development Corporation's Industrial Parks in Plattsburgh and Champlain all offer the significant benefits of the New York State Empire Zone Program.
A program started in 1986 by the State of New York, Empire Zones are designed to offer state-funded incentives for businesses locating in selected areas of the state. Major improvements were added to the program in 2001 and 2006. These incentives fall into four major categories.
The first is an array of significant tax incentives.
Tax Reduction Tax Credit -- This 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 tax credit may reduce the company's New York State tax liability to zero.
Real Property Tax Credit -- This credit is computed using a formula based on the number of jobs created and the real property taxes paid on property in the zone. Unused credits may be taken as a cash refund in the year in which they are earned.
Wage Tax Credit -- The Zone offers a five-year wage tax credit. A new company locating within a zone may claim a $1,500 credit for each non-targeted employee and a $3,000 credit for each targeted employee who are paid at least 135 percent of the minimum wage.
Zone Capital Tax Credit -- The Zone Capital Tax Credit offers investors who purchase original issue capital stock in a certified zone business a 25 percent tax credit on that investment. A business within the zone can receive a tax credit of 25 percent for any qualified investments made toward that business.
Investment Tax Credit -- The Investment Tax Credit offers a 10 percent tax credit based on investments in tangible property.
Sales Tax Exemption -- The Sales Tax Exemption eliminates the 4.25 percent New York State sales tax for tangible personal property and services sold to a qualified business within a zone.
A second area of incentives are discounted utility rates. The Development Corporation's Zone locations all receive electricity services from New York State Electric & Gas, which offers Empire Zone discounts.
The third incentive is financial assistance. For a business locating within the Empire Zone, there are a number of low-interest loans available through local, state and federal programs such as the Statewide Zone Capital Corporation.
Job training is the fourth incentive offered to a business which locates within the Empire Zone. Wages can be subsidized during the training period, or a company can receive state funds to help defray the cost of sending employees to training programs.
The Empire Zone Program and The Development Corporation's Industrial Parks provide customers and prospects with the opportunity to access significant benefits. The staff at The Development Corporation welcomes the opportunity to discuss the Empire Zone Program and how it may be beneficial to your business. More information may also be found at New York State Empire Development, New York State's Economic Development Department.
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