City of Niagara Falls Empire Zone
Business Incentive Programs

The Niagara Falls Empire Zone (EZ), is one of only 52 zones in New York State. The EZ program was created by the New York State Department of Economic Development in 1986. The City of Niagara Falls became a recipient of an EZ in 1988 and is the only zone in the County of Niagara.

Because of our location on an international border with Canada, the City of Niagara Falls has 3 available international bridges that serve the EZ area: Rainbow, Whirlpool and Lewiston-Queenston bridges. An array of business incentive programs are available within the Niagara Falls Empire Zone. These programs are offered by New York State, the City of Niagara Falls and local utility companies.

The following is an outline of the business incentives available through the EZ program:

New York State

EZ WAGE TAX CREDIT (WTC)
Certified EZ businesses are eligible for up to five (5) years for a wage tax credit for newly created full-time jobs. The wage tax credit is $3,000 for employees in specially targeted groups; $1,500 wage tax credit for all other hires.

EZ INVESTMENT TAX CREDIT (ITC)
Certified EZ businesses are eligible for a one time refundable investment tax credit of 8%-10% for investment costs (construction, renovation and fixed asset purchase) in the EZ. This credit is available under the corporate franchise tax (10%) and personal income tax (8%).  For Mfg. Facilities only, Retail, Service, Commercial not eligible.

EZ EMPLOYMENT INCENTIVE CREDIT (EIC)**
An additional investment tax credit for up to three (3) years for increased employment, equal to 3% of the initial investment (30% of the investment tax credit) is available to employers in the EZ who employ 101% of the number of people employed in the year before the EZ investment tax credit was claimed.  (Retail is not eligible). 
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..........** This credit applies only to franchise tax & business corporations.

SALES TAX REFUND FOR BUILDING MATERIALS
The purchaser of building materials is eligible for the New York State (4%) and Niagara County (3%) sales tax exemption on the purchases of building materials to be used in connection with construction, expansion or rehabilitation of industrial or commercial properties in the EZ through are fund process.

EZ TAX REDUCTION CREDIT
This new credit is applied against business corporate taxes, personal income taxes, banking corporation taxes or insurance corporation taxes. The credit is computed by a formula based on the numbers of jobs created, the company's assets in the zone and in the State, and the income taxes owed by the company.

EZ REAL PROPERTY TAX CREDIT
This new credit is applied against business corporate taxes, banking corporation taxes or insurance corporation taxes. The credit is computed by a formula based on the numbers of jobs created and the real property taxes paid on property in the zone. 

EZ SALES TAX EXEMPTION
This new credit is a sales tax exemption from the 4% New York State sales and uses taxes for tangible personal property and services sold to a qualified business. Niagara County has also optioned to exempt the 3% County portion. A company must register with the New York State Department of Taxation & Finance and be issued an exemption certificate. The certificate is valid for a 10-year period as long as the business meets or exceeds its base year employment number. 

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City of Niagara Falls

Real Property Tax Abatement Program - 485b
The City of Niagara Falls New York offers a real property tax abatement for certain commercial and industrial projects. Any renovations or new construction by EZ businesses is eligible for the 485b tax abatement program: (50%) exemption of real property taxes for the first year on all improvements, increasing by five (5%) per year until the eleventh (11) year, when the property becomes fully taxed.

Utility Companies

National Fuel (natural gas supplier)  
National Fuel provides a special "Empire Zone Rider" for certified EZ businesses either new or existing business, which meet their necessary qualifications.

Verizon (telecommunications) 
Certified Empire Zone businesses are eligible for a five (5%) percent reduction on Intrastate-Intralata phone charges provided by Bell Atlantic. This reduction applies to certified new businesses and existing certified businesses that made a commitment to capital expansion or employment expansion.

Niagara Mohawk (electric supplier)
Niagara Mohawk provides a special "Empire Zone Rider" for certified EZ businesses either new or existing business, which meet their necessary qualifications.

More detailed information can be obtained from the Niagara Falls Empire Zone Office at 1022 Main Street, P.O. Box 564, Niagara Falls, NY 14305 or by calling (716) 286-8830.

 

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© 2007 Niagara Falls Empire Zone.  All rights reserved.