The Truths About the NYS Empire Zone

New York State Empire Zones are often overlooked by state business owners because of common misconceptions that they have about what exactly an Empire Zone is. Here are a few of those misconceptions and some very simple and accurate corrections.

 

Fiction: Empire Zone companies get tax breaks for projected job creation or no jobs.

Fact: Projections are meaningless. The only way to get tax credits is through real job creation or investment.

 

Fiction: Any company that doesn’t meet job projections should be decertified.

Fact: The recommendation to decertify companies that fail to meet job projections because of economic downturn (like that experienced after Sept. 11) is not only counter-productive but against the law.

 

Fiction: N.Y.S. has no idea how many jobs are created or how much the programs cost.

Fact: More than 56,000 new jobs have been created by EZ certified businesses. In 2002, total employment at Zone certified businesses was more than 257,000 at a per job cost of approximately $1,200, leveraging over $4.15 billion in investment by Zone businesses.

 

Fiction: Empire Zones are only intended for distressed inner cities.

Fact: Since its inception, the Legislature has broadened the program by requiring Zone designation for other purposes, including closure of military bases, closure of state facilities, or downsizing by a major regional employer.

 

Fiction: ESD does not provide proper oversight on the Zones program.

Fact: Each Empire Zone is administered locally and Empire State Development diligently ensures that it is consistent with requirements of the law.

 

Fiction: Putting vacant buildings in Zones is an abuse of the program.

Fact: The enabling legislation establishing the program states that at least 25 percent of the total land within such an area should be vacant, abandoned, or otherwise available for industrial or commercial development or redevelopment.

 

Fiction: It is difficult to become a qualified member of the EZ.

Fact: To qualify to become an Empire Zone member, your business can be any size but in good standing. Some restrictions do apply for retail businesses, but most companies are eligible to receive benefits.