What is an Empire Zone?
The Empire Zone Program was created in New York State to stimulate economic growth through a variety of tax Incentives and benefits to attract new businesses and enable existing businesses to expand and create more jobs.

Twelve hundred eighty acres within the City of Newburgh, the Town of Newburgh and the Town of New Windsor have been selected to be in the Newburgh-Stewart Empire Zone (EZ). 

Certified businesses that make an investment and/or create new jobs in Newburgh-Stewart EZ are eligible for a combination of state tax credits and benefits.   This can mean very significant savings for the business.  The municipalities can offer additional incentives for development including property tax abatements for improvements to real property in the zone.

The Department of Labor can provide employment screening and recruitment for qualified businesses and Private Industry Council and   Orange/Ulster BOCES can accommodate On-the-Job Training and customized training programs.  Orange County Community College has the leading edge training facility – the Institute for Advanced Technology and Technology Management at its Newburgh Extension Center.

Summary of Tax Incentives & Benefits

Wage Tax Credit - A credit against NYS income tax is available to eligible firms creating full-time jobs in empire zones. This credit is available for five consecutive years at $1,500 per year per new job created for non-targeted workers and $3,000 per year per new job created for targeted workers. For businesses certified in Investment Zones, the credit for employees with wages over $40,000 increases by $500 per year per new job created. Eligible employees must be on the payroll for more than half the taxable year. These tax credits can be carried forward indefinitely. New businesses can request a cash refund of 50% of its unused tax credits in any taxable year.

Investment Tax Credit - New York State offers an Empire Zone Investment Tax Credit of 10% for corporations (8% for personal income taxpayers) for eligible investments in building and/or depreciable tangible personal property used primarily in production in a facility located within an empire zone.

Employment Incentive Tax Credits (EITC) - An Employment Incentive Tax Credit equal to 3% for corporations of the eligible ITC investment is deductible from the tax payable in each of three years succeeding the business’s eligible investment, (2% for personal income taxpayers for two succeeding years) providing the business maintains employment of 101% of the average number of employees employed by the business in the year immediately preceding the year of the eligible investment.

QEZE Sales Tax Exemption - Qualified Empire Zone Enterprises (QEZE’s) are granted a 10-year exemption from NYS sales tax on purchases of goods and services (including utility services) used predominantly in an empire zone. The business must pass an employment test each year to demonstrate that it has increased employment. The base employment for a new business is zero.

QEZE Tax Reduction Credit - Qualified Empire Zone Enterprises (QEZEs) are allowed a credit against their NYS income tax equal to a percentage of taxes attributable to the empire zone enterprise. This credit is available for 10 years. The business must pass an employment test each year to demonstrate an increase in employment. The base employment for a new business is zero.

QEZE Real Property Tax Credit – Qualified Empire Zone Enterprises (QEZEs) are allowed a credit against their real property taxes paid in the zone. This credit is available for 10 years. The business must pass an employment test each year to demonstrate an increase in employment. The base for a new business is zero.

            Reduced utility discounts may be available.

For more information on the Newburgh-Stewart Empire Zone, contact:

Contact 
William Trimble, Empire Zone Director
          Phone 845-291-2700
          Fax 845-291-2724
          Email ez@orangecountygov.com