Am I Taking Advantage of Empire/Empowerment Zone Benefits?
by Rick Shaw, CPA

The NYS Empire Zone Program and the Federal Empowerment Zone Program have great tax benefits available for companies located in designated geographical areas. Unfortunately, I believe a lot of companies are not taking full advantage of these available tax benefits which are as follows:

NYS Empire Zone Program

1) Income Tax Reduction Credit – this credit is allowed against a company’s franchise tax or in the case of pass through entities (Partnerships, LLC’s and S. Corporations) allowed against the owners personal income taxes.

2) Wage Tax Credit – this credit can be $1,500 per qualified employee ($3,000 for what NYS considers targeted employees).

3) Real Property Tax Credit – this credit can offset your annual payments of real taxes either fully or partially and in some cases can generate in a NYS tax refund.

4) Sales Tax Exemption – this unlike the above items is an exemption not a credit. In Onondaga County Empire Zone Companies may be eligible for 4% exemption (reduction) from sales tax on purchase of goods and services.

Federal Empowerment Zone

1) Wage Tax Credit – qualified zone wages are eligible for a 20% credit of the first $15,000 of wages paid to each qualified zone employee (max of $3,000).

2) Tax – Exempt bond financing and various other credits are also available if certain percentages of qualified zone employees are hired and employed by the company.

Please keep in mind that you must first find out if you are located in the above mentioned zone areas and if so there are certain procedures that must be followed to take advantage of these credits.

We have had numerous successes with helping companies take advantage of these programs.  If you have any questions or need additional information please feel free to contact Rick Shaw, CPA and partner at 701-6431 or rshaw@GreenSeifterCPAs.com .

Green and Seifter CPAs offers a wide array of professional services spanning decades of experience in the areas of accounting, auditing, bookkeeping, financial planning, fraud, and taxation to individuals and businesses throughout Central New York.

To learn more about the services we provide, please link here.  Or, if you would like to speak directly to one of our professionals, please contact us at 315-422-1391.