1. Sales Tax Exemptions: QEZEs are granted a 10-year exemption from state sales tax on purchases of goods and services (including utility services and owned vehicles) used predominantly in such zone.
2. Credit for Real Property Taxes: QEZEs are allowed a refundable credit against their business tax equal to a percentage of real property taxes paid based upon increased employment in the zone.
3. Tax Reduction Credit: QEZEs are allowed a credit against their tax equal to a percentage of taxes attributable to the zone enterprise
4. Wage Tax Credit: This credit is available for up to five consecutive years for companies hiring full-time employees in newly created jobs. For employees in special targeted groups, this credit equals $3,000 per year, with a credit of $1,500 per year for non-targeted workers.
5. EZ Investment Tax and Employment Incentives Credit (EZ-EIC): Businesses that create new jobs and make new investments in production, property, and equipment may qualify for tax credits of up to 19 percent of the company’s eligible investment.
6. New Business Refund: Businesses new to N.Y. are entitled to a 50 percent cash refund of unused EZ-WTC and EIC amounts. Other businesses may carry forward unused credits indefinitely.
7. Utility Rate Savings: Special reduced electrical and gas rates may be available through investor-owned utilities in New York State. Businesses that locate or expand their operations in an EZ may receive significantly reduced rates.
8. Zone Capital Credit: A 25 percent tax credit against personal or corporate income taxes is available for contributing or purchasing shares in a zone capital corporation, or for a direct equity investment in a certified zone business; or for contributions to approved community development projects within an EZ.
9. Sales Tax Refund Credit: Purchases of building materials to be used for commercial or industrial real property located in an EZ are eligible for a refund or credit of New York State sales taxes. A similar refund or credit of local sales tax may be available from the locality.
10. Real Property Tax Abatement: EZs may offer tax abatements from an increased assessment, with the abatement value based on improvements to real property for up to 10 years. This holds true for up to seven years at 100 percent, decreasing over the last three years of the exemption.
In addition to these, New York State has trimmed personal tax rates to put more discretionary income in the hands of its workers and their families. Personal tax savings to families may reach as high as 30 percent. Homeowners will soon pay 27 percent less in property taxes than in 1997. Under Governor Pataki’s direction, billions of dollars of tax cuts have taken effect over the past seven years, resulting in new jobs, new business opportunities, and overall prosperity for New York State residents.
****Three quotes are included here… One each from a small, medium, and large QEZE in Cattaraugus County.