The EZ Program was created in 1986 by the New York State Economic Development Zones Act to stimulate economic growth through a variety of financial incentives designed to attract new businesses for expanding and creating more jobs. At present there are 52 ZONEs throughout the State. Businesses that make an investment and/or create new jobs in an EZ are eligible for a combination of State tax credit and benefits, as follows:

Wage Tax Credit

A 50% wage tax credit for up to five consecutive years for hiring full-time employees in newly created jobs. For employees in special targeted groups, this credit equals $3,000 a year, with a credit of $1,500 a year for all other new hires. Investment Tax Credit A refundable investment tax credit of 8% to 10% is available to certain businesses based on investments made in an EZ. This credit is available under the corporate franchise tax and personal income tax.

A credit equaling 30% of the investment tax credit is available for each of the next three consecutive years following the year in which the investment tax credit is taken against the corporate franchise tax. To be eligible for this added credit, the taxpayer must employ at least 101% of the average number of people employed in the next year before the investment tax credit was claimed.

Real Property Tax Credit

A refundable credit that is also applied against business corporate taxes, personal income taxes, banking corporation taxes and insurance corporation taxes. The credit is computed by formula based on the number of jobs created and the real property in the Zone. The credit is available for a 14-year period - 10 years at 100%, decreasing 20% each year thereafter.

A credit applied against business corporate taxes, personal income taxes, banking corporation taxes and insurance corporation taxes. The credit is computed by formula based on the number of jobs created, the company's assets in the Zone and in New York State, and the income taxes owed. The credit is available for a 14-year period - 10 years at 100%, decreasing 20% each year thereafter.

Sales Tax Refund

Purchases of building materials to be used in connection with commercial or industrial real property located in an EZ are exempted from State sales tax through a refund process. A similar refund of local sales tax may be available at local option.

Sales Tax Exemption

Effective March 1, 2001 there is an exemption from the 4% (or 4 % Metropolitan area) New York State sales and use taxes for tangible personal property and services purchased and used by qualified zone businesses.