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Empire Zone employment incentive credit (EZ-EIC)

You're entitled to this credit if you or your business:

  • was certified as an EZ business or as a qualified investment project (QUIP) under the General Municipal Law, Article 18-B as of June 30, 2010,
  • has a Certificate of Eligibility and an EZ retention certificate,
  • claimed the Empire Zone investment tax credit (EZ-ITC) for qualified property placed in service in an EZ:
    • by your EZ business, prior to April 1, 2014, or
    • by your QUIP, within 9 years following your business’s tax year in which June 30, 2010, occurred, and
  • increased your average number of employees in the EZ to at least 101% of your number of employees in the EZ during your base year.

The EZ-EIC may be claimed for each of the 3 years succeeding the tax year for which the EZ-ITC is claimed.

Example: You own an EZ business certified prior to June 30, 2010, that has a certificate of eligibility and an EZ retention certificate. You claimed the EZ-ITC for qualified property placed in service on March 1, 2014, for your tax year ending December 31, 2014. Therefore, if you meet the employment test, you may claim the EZ-EIC for the following three tax years, 2015, 2016 and 2017.

Example: You own a business certified as a QUIP prior to June 30, 2010, that has a certificate of eligibility and an EZ retention certificate. You claimed the EZ-ITC for qualified property placed in service on September 1, 2014, for your tax year ending December 31, 2014. Therefore, if you meet the employment test, you may claim the EZ-EIC for the following three years, 2015, 2016 and 2017.

How much is the credit?

  • The credit is 30% of the original EZ-ITC that was allowed.
  • A qualified business may elect to have 50% of its unused EZ-EIC refunded.

For additional information on claiming this credit, see:

 

Updated: