Empire Zone investment tax credit (EZ-ITC)
Note: The Empire Zones Program is closed to new entrants.
The EZ-ITC has expired for all taxpayers as of December 31, 2019. Taxpayers may only claim a credit carryover or recapture.
Who is eligible?
You are 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, and
- placed qualified property in service in an EZ as a QUIP, within 9 years following your business's tax year in which June 30, 2010, occurred.
Qualified expenses paid or incurred on or after April 1, 2014, that no longer qualify for the EZ-ITC may instead qualify under the investment tax credit claimed on Form CT-46 (for corporations) or Form IT-212 (for all others). See Investment tax credit for more information.
How much is the credit?
- For C corporations, the credit is 10% of the cost or other basis of the qualifying property.
- For all others, the credit is 8% of the cost or other basis of the qualifying property.
- A taxpayer that is approved by the Commissioner of Economic Development as an owner of a QUIP or a significant capital improvement project may receive a refund of 50% of its unused EZ-ITC for a maximum of 10 years for each project.
- 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 Incentive Credit, and its instructions (for all others); and
- TSB-M-10(6)(C), (12)I, (19)S Legislative Changes to the Empire Zones Program.