Empire Zone Program

SoBRO manages the Port Morris Empire Zone, one of 11 New York City businesses districts that participate in the New York State Empire Zone (EZ) Program. As part of the program, we provide significant tax and financing benefits for businesses relocating to and expanding within EZ boundaries. Incentives include:

Wage Tax Credit
A $1,500 credit per employee for up to five consecutive years for hiring full-time employees in newly created jobs. For employees in 'targeted groups', this credit equals $3,000 per year. Credit increases $500 for wages over $40,000.

Investment Tax Credit
A credit for the purchase of property and equipment related to production, R&D, and industrial waste treatment. The credit is 10% under the corporate franchise tax and 8% for personal income tax.

Employment Incentive Credit
A credit for creating new employment in a commercial/ industrial company to operate new property of equipment. This credit equals 3% of the investment cost, and used consecutively with Investment Tax Credit (ITC), it is taken in each of the 3 years following the initial claiming of the ITC.

Tax Reduction Credit
Based on number of jobs created, the company's assets in the Zone and income taxes owed by the company, Qualified Empire Zones Enterprises (QEZE) can receive a credit against business corporate taxes, personal income taxes, bank corporate taxes or insurance corporate taxes for 10 years.

Property Tax Credit
Qualified Empire Zones Enterprises (QEZE) that own real property may receive a credit against business corporate taxes, personal income taxes, banking corporate taxes or insurance corporate taxes. Unused credits are refundable in the year that they were earned. The credit is available for 10 years and is calculated based on the number of jobs created and the real property taxes paid on property in the Zone. The company's eligibility is determined annually.

Sales Tax Exemption
Qualified Empire Zones Enterprises may be exempt from the 4% NYS sales and uses tax on tangible personal property and services exclusive to the operation of a QEZE. Benefit period of 10 years.

Sales Tax Refund
Purchases of building materials to be used in connection with commercial or industrial properties located in an EZ is eligible for a refund of NYS sales taxes.

Utility Discounts
Discount rates for Empire Zone-certified businesses are available through KeySpan Energy's Business Incentives Rate of up to 25% per billing cycle, and Verizon's monthly 5% discounts per billing cycle on local phone usage.

Zone Capital Credit
A 25% tax credit, against personal or corporate taxes a direct equity investment into a zone-certified business; or for cash donations to approved community development projects within EZ.

Statewide Zone Capital Credit Corporation Loan
Low interest rate loan for Zone-certified businesses at 5% APR for the first 3 years and 7% for the remainder of term. Loans range from $3,000 to 300,000.

To find out more about our programs contact: info@sobro.org