Description of Benefits Rockland County Empire Zone Disclaimer: The following descriptions and examples are for illustrative purposes only and are highly simplified. Additional regulations and limits, not described below, apply. Please consult with your accountant and lawyer to verify your eligibility. The Rockland County Empire Zone Coordinator can also help you understand these formulas in more detail. Definitions "New Employees" are those hired after a business has received Empire Zone Certification. "Test Year Employment" is the average number of New York State FTEs in a business the year prior to Empire Zone Certification. "Employment Increase Factor" is the number of New Employees divided by Test Year employment. Example: A company has 10 employees, becomes certified and hires an additional 5 new positions. Test Year employment is 10, New Employment is 5, so the employment increase factor is 5/10 or 50%. “Targeted Employees” are individuals that meet any of the following criteria: received public assistance within the past two years, honorably discharged member of the armed services, ex-felon, high risk youth, vocational rehabilitation, qualified summer youth, qualified food stamp recipient (18-24), economically disadvantaged family member, dislocated worker- employee presently receiving or eligible to receive benefits under the Workforce Investment Act, or qualified SSI recipient (or has received SSI within the past two months). The Department of Labor provides assistance in determining if an employee meets this definition. Benefits Tax Reduction Credit - The Tax Reduction Credit allows for a credit against New York State Income Tax. The Tax Reduction Credit is available to certified businesses for 10 years and is the product of multiple factors. The most important factor is the Employment Increase Factor, explained above. In the example given, the company would have its NYS income taxes reduced by up to 50%. Wage Tax Credit - This New York State income tax credit is generally $1,500 per FTE employee per year for 5 years (this applies to any position created after July 30, 2006). However, a Targeted Employee paid at least 135% of minimum wage would qualify for a wage tax credit of $3,000. The credit is used to reduce a business' NYS business income taxes. New businesses that do not owe NYS taxes can receive a cash refund of up to 50% of the credits and the remainder is carried over until utilized. Businesses located in an Investment Zone (i.e. Spring Valley and Haverstraw) are eligible to receive an additional $500 in Wage Tax Credit per employee per year for any new employees that receive $40,000 or more in total compensation (wage/salary + benefits). Credit Against Real Property Taxes - Up to 100% of property taxes paid by the certified business to the local municipal entities are eligible for a credit against NYS income taxes for 10 years. This credit if fully refundable, which means that a certified business can reduce its tax burden below zero and receive a refund payment from New York State. The property tax credit calculation relies on a number of factors including new employment and investment at the zone location. Payments-in-lieu-of-tax agreements (PILOT) are considered "eligible real property taxes.” Sales Tax Refunds – State sales tax paid on the purchase of any building materials used in construction or renovation of a property located within the Empire Zone can be refunded to the company. Some exclusions apply. Sales Tax Exemption - The state sales tax exemption applies to most purchases made by an Empire Zone certified business (unlike the refund, above, that only applies to construction material). The exemption covers the majority of purchases for a ten year period. Investment Tax Credit - The total effect of this benefit is up to a 19% return to the company on its original investment in production equipment (10% up front, 3% in each of the following three years). This benefit only applies to manufacturers, manufacturer- equivalents and certain other specific industries. A portion of this credit may be refundable to companies that meet the “new business” definition of the Empire Zones program. Zone Capital Tax Credits - Economic Development Zone Capital Credits can be issued for qualified new investments or contributions to an approved project in the zone. They can be used by a business to attract new capital investment into a business or by a non-profit to increase the tax incentive donors have access to for their contributions.
Pages to are hidden for
"Nys Income Tax Refund - DOC"Please download to view full document