N.Y. Comp. Codes R. & Regs. tit. 5 § 11.1

Current through Register Vol. 46, No. 17, April 24, 2024

Section 11.1 - Purpose and general description

(a) The purpose of this Part is to set forth the application process for certification of business enterprises as eligible for benefits pursuant to article 18-B of the General Municipal Law.

(b) A business enterprise which operates a facility in an empire zone and which is certified pursuant to this Part may be eligible for one or more of the following benefits, providing all applicable statutory criteria have been satisfied:

(1) a reduction in utility costs, assessed prior to 1994, of certain businesses other than those primarily engaged in the retail sale of tangible personal property, pursuant to section 186-a.8 of the Tax Law;

(2) an investment tax credit against the franchise tax on business corporations pursuant to section 210.12 -B and an employment incentive credit pursuant to section 210.12 -C of the Tax Law;

(3) an investment tax credit against the personal income tax pursuant to section 606(i) and (j) of the Tax Law, and an empire zone employment incentive credit pursuant to section 606(i) and (j)-(l) of the Tax Law;

(4) an empire zone wage tax credit against the franchise tax on business corporations, the personal income tax, the franchise tax on banking corporations and the franchise tax on insurance corporations pursuant to sections 210.19, 606(i), (k), 1456(e) and 1511(g), respectively, of the Tax Law;

(5) an empire zone real property tax credit against the franchise tax on agricultural cooperatives pursuant to section 187-j of the Tax Law, an empire zone investment tax credit against the franchise tax on agricultural pursuant to section 187-k of the Tax Law, the empire zone employment incentive credit against the franchise tax on agricultural cooperatives pursuant to section 187-l of the Tax Law, and the empire zone wage tax credit against the franchise tax on agricultural cooperatives pursuant to section 198-m of the Tax Law;

(6) a special empire zone rate for gas or electric service equal to the incremental cost of providing such service pursuant to section 66(12-c) of the Public Service Law. Such empire zone rates may remain available to certified business enterprises for a period of up to 10 years following initial certification, unless such certification is revoked, notwithstanding the expiration of the designation of an empire zone;

(7) a qualified empire zone enterprise credit for real property taxes pursuant to sections 14, 15, 210(27), 187(j), 606(bb), (i), 1456(o) and 1511(r) of the Tax Law;

(8) a qualified empire zone enterprise tax reduction credit pursuant to sections 14, 15, 210(28), 606(i), (cc), 1456(p) and 1511(s) of the Tax Law; and

(9) a qualified empire zone enterprise sales and use tax exemption pursuant to sections 14 and 1115(z) of the Tax Law.

(c) Certain benefits may be available in empire zones without obtaining certification pursuant to this Part, including:

(1) a real property tax exemption pursuant to section 485-e of the Real Property Tax Law;

(2) a tax credit for qualified investments in or contributions to empire zone capital corporations, qualified investments in certified zone businesses and contributions to community development projects pursuant to sections 210.20, 606(i), (l), 1456(d) and 1511(h) of the Tax Law; and

(3) a refund or credit of State and local sales taxes for certain purchases pursuant to sections 1119(a) and 1210 of the Tax Law.

N.Y. Comp. Codes R. & Regs. Tit. 5 § 11.1