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QEZE - Qualified Empire Zone Enterprises, EZ -
Empire
Zone, IDA - Industrial Development
Agency
- Tax
Reduction
Credits (QEZE) applied against business-related income.
Based on
business structure,
this credit in computed using job creation factors, company assets,
(within
and outside the zone), wage compensation ratios & corporate tax
structure.
Effective 1/1/01, this credit is available for 15 years - 10 years at
100%
decreasing 20% each year thereafter. The tax reduction credit may
reduce the company's tax to zero, thus eliminating the alternative
minimum
tax and the fixed-dollar minimum. There is a $10,000
cap/job.
There maybe other restrictions; check with the local EZ Coordinator.
- Real
Property Tax Credits (QEZE) applied against state business-related
taxes. This credit is computed using job creation factors &
real
property taxes. Effective 1/1/01, this credit is available for 15
years - 10 years at 100%, decreasing 20% each year thereafter.
Real
property tax credits may reduce the company's tax liability below the
alternative
minimun tax or the fixed-dollar minimum. Unused credits may be obtained
as a cash refund in the year which they were earned. There is a $10,000
cap/job. There maybe other restrictions; check with the local EZ
Coordinator.
- Exemption
from the 4% State Sales & Use taxes (QEZE) - This applies to
all
tangible personal property & services predominately used (50% or
more)
for a qualifying company. This is valid for qualified company up
to 10 years.
- Power
Rate Reduction (EZ) - Qualifying businesses may be able to
get
an average of 50% – 75% reduction in electrical rates.
- Wage
Tax Credits (EZ) – Qualifying companies can receive credit
equals
$1,500 for non-targeted jobs created and $3,000 for targeted jobs
created.
Credits may be taken for up to 5 consecutive years.
- Investments
Tax Credits (EZ) – Qualifying businesses can receive an 8 – 10%
credit
for any investment costs, such as: construction, renovation, or
purchase
of buildings or equipment for a production business.
- Telephone
Rate Reduction (EZ) - Qualifying businesses may qualify for a 5%
rate
reduction on telephone costs.
- Lower
Interest Rates for Debt Incurred (IDA)- (2 – 3% lower than the
conventional
cost of borrowing). Taxable or tax exempt bonds cans be
issued
for qualified companies, subject to the limitations imposed by the
Internal
Revenue Code. This also gives them access to the public financial
markets (i.e. GE Credit, Mutual Funds, & Investment Houses).
Linked-Deposit loans are also available.
- Real
Property Tax Abatements (IDA) - Payment in Lieu of Tax
(PILOT)
Agreements can exempt a qualified company from normal real property
taxes,
including school taxes. The PILOT will usually require the
applicant
to pay a portion of what it would normally pay in real property taxes,
especially in the earlier years of the project. This can act as a
safety net for real property tax credits in case the company no longer
qualifies for those credits.
- Sales
& Use Tax Exemption (IDA) - The Sales & Use Tax in
Lewis
County is 7.75%. A qualified company can purchase the equipment,
materials
& services needed to acquire, construct, reconstruct &/or equip
the project without having to pay sales & use taxes.
- Mortgage
Recording Tax Exemption (IDA) - In New York State,
mortgagor
must pay a 1.00% mortgage recording tax – a significant
expense.
A qualifying company can receive this benefit.
- County
Employment & Training – On-the-job training contracts. A
qualified company may be reimbursed 50% of a new employees wages for a
specified period of time. Employees must be Workforce Investment
Act eligible.
- Technical
Assistance (EZ & IDA) – Site Selection/Start Ups,
Business
Planning/Analysis, Assistance with Local, State, & Federal programs.
- Financial
(Loan & Grant) Assistance(EZ & IDA) – available from Local,
State & Federal Sources.
Please
contact the Lewis County
Industrial
Development Agency, PO Box 106, Lowville, N.Y. 13367 (315) 376- 3014)
for a complete summary on doing business
in
our county. If you like, this information can include detailed
information
about your specific type of business and a
custom designed incentive program.
Note: In
order to obtain the above incentives the company must be
qualified.
Qualifying depends on job creation, company location, company type and
regulatory requirements. The above is subject to change.
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