Empire Zone employment incentive credit (EZ-EIC)
Note: The Empire Zones Program is closed to new entrants
The EZ-EIC may be claimed for each of the 3 years succeeding the tax year for which the Empire Zone investment tax credit (EZ-ITC) is claimed.
For tax years beginning on or after April 1, 2014, the EZ-ITC has expired for all taxpayers other than an Article 9-A corporation certified as a qualified investment project (QUIP) under the General Municipal Law Article 18-B. As a result, taxpayers (other than a QUIP) may only claim an EZ-ITC and EZ-EIC credit carryover or recapture.
Who is eligible?
You're entitled to this credit if you or your business:
- was certified 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 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.
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, 2015, for your tax year ending December 31, 2015. Therefore, if you meet the employment test, you may claim the EZ-EIC for the following three years, 2016, 2017 and 2018.
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.
- Form CT-603, Claim for EZ Investment Tax Credit and EZ Employment Incentive Credit, and its instructions (for corporations); or
- Form IT-603, Claim for EZ Investment Tax Credit and EZ Employment Inventive Credit, and its instructions (for all others); and
- TSB-M-10(6)(C), (12)I, (19)S Legislative Changes to the Empire Zones Program.