ROTTERDAM Town defends Empire Zone listings BY JUSTIN MASON Gazette Reporter Reach Gazette reporter Justin Mason at 395-3113 or jmason@dailygazette.net
Win Morrison is hoping a new company will find the Crounse Farm attractive. The Kingston Realtor had originally arranged a deal that would have developed the 24-acre property adjacent to Interstate 88 into a Flying J truck stop. But when the economy tanked last winter, so did the Utah-based company, which filed for bankruptcy in December. “Because of the economic debacle, it collapsed,” he said of the deal. So did Morrison’s efforts to develop another stretch of property along Duanesburg Road, east of the I-88 interchange. However, he’s convinced he’ll be able to find developers for both properties as the economy mends, provided he can get a little bit of help from the state’s Empire Zone program. “I have some very interested parties at this time and they always ask about the Empire Zone designation,” he said. “This spot is what they want, but it doesn’t have the Empire Zone designation.” Rotterdam is poised to add roughly 122 acres to Schenectady County’s Empire Zone as part of an 18 percent expansion. Properties included in this expansion include the dormant VStream manufacturing plant, an area near Lucia Specialized Hauling, property by the WGY radio tower off Burdeck Street and new parts of the Rotterdam Corporate Park, including the small business center. “Our hopes are to attract technology companies to the area,” explained Supervisor Steve Tommasone during a public hearing on the expansion Wednesday. Yet the large tracts of land Morrison is marketing aren’t on the list. And there’s a chance they never will be. Tommasone said town and county leaders developed the expansion to fit areas of the town that are conducive to industrial uses. He said the area along Duanesburg Road near the interchange would be ideal for professional offices or retail development, which aren’t the type of businesses that ordinarily qualify for Empire Zone status. The expansion comes as the Empire Zone program is scheduled to expire next year. Still, businesses that qualify for zone benefits before the expiration could still receive help for up to 10 years, provided they qualify annually under new state guidelines. Board member John Mertz offered concern that the new designations might not have utilized the most marketable properties in Rotterdam. He pointed to one of the new sites that appears landlocked and without infrastructure for industry. “Are we best utilizing our request when we’re asking for the designation on a landlocked property?” he asked during the public hearing. Tommasone defended the selections. He said the areas designated for the expansion were correlated with existing Empire Zones and in areas of the town that could use incentive for development. “We’re looking to assist in getting new uses from those existing facilities and more importantly looking at other areas where we have some unique opportunities to attract business.”
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
The timing of this is funny. The State yesterday announced it's fixin to yank Empire Zone bene's from Center City{yet another KRAT white elephant/taxpayer sinkhole Downtown}, Parker Inn and Glenville Industrial Depot {for failure to create promised jobs}.
Now Rotterdam wants to expand its zone? By careful what you wish for-you just might get it.
Something was done-Death Ray got a big contract extension and they increased Metrograft's bonding. The similarities to the worst School District in the State are obvious. They don't know nuthin about job creation they know about increasing taxes and chasing away job creators.
so beyond money for job creation if you are a business in an empire you can have this
Benefits for Empire Zone certified companies
Wage Tax Credit: Available to companies hiring full-time or full-time equivalent employees in the zone. Credits are available for up to five consecutive years. Credits are $1,500 per employee; for employees in special targeted groups the amount is raised to $3,000 per employee per year. In investment zones, this credit is increased by $500 for workers with wages over $40,000. Unused credits can be forwarded indefinitely and new businesses (those that have been taxable for five years or less) are eligible for a 50% refund of unused credits.
Investment Tax Credit: Available to companies making an investment in the zone for depreciable property and/or equipment which is principally used in manufacturing, processing, assembly, industrial waste treatment or air pollution-control facilities, R&D or financial institutions. 10% (8% for personal income tax filers) of the eligible investment can be taken for credit. Unused credits can be forwarded indefinitely and new businesses are eligible for a 50% refund of unused credits.
An additional Employment Incentive Credit equal to 30% of the investment tax credit is available for each of the three years after the Investment Tax Credit (ITC) is claimed if employment is increased when the investment is made. Unused credits can be forwarded indefinitely and new businesses (personal income tax only) are eligible for a 50% refund of unused credits.
Zone Capital Credits: A 25% tax credit is available for personal or corporate income tax payers for eligible investments in certified zone businesses, or contributions to approved community development projects. There is a lifetime limit of $100,000 in zone capital credits per contributor for Community Development Projects and $100,000 lifetime limit in zone capital credits per investor in a Direct Equity Investment project.
NYS Sales Tax Refund: A refund of the State portion [4%;4.375% in the MTA region] of the sales tax is available for the purchase of building materials used in the construction or renovation of industrial or commercial property located in a zone. Empire Zone certification is not a requirement to receive this benefit; however, the purchaser must be buying for a property in the zone.
Enhanced benefits for Qualified Empire Zone Enterprises (QEZE)
To receive Qualified Empire Zone Enterprise (QEZE) enhanced zone benefits, a business must be zone certified under the requirements outlined in the eligibility and certification section and must pass additional tests based on the business’ employment history and operations. Discuss QEZE eligibility with your local zone coordinator.
Sales Tax Exemptions: An exemption from the State portion of the sales tax at the point of purchase is available for most goods and services used directly and predominantly (50%) in the zone. Utility services qualify for the exemption if used or consumed directly and exclusively (100%) in the zone. Telephone services are exempt if delivered and billed to the business at an address in its zone. An exemption from any locally imposed sales tax may also be available. The exemptions run for 120 consecutive months from the effective date on the sales tax certification issued by the Department of Tax and Finance, provided the business continues to meet the employment test each year. Once certified as a zone business by ESD, a business would fill out a DTF-80 - Application for a Qualified Enterprise Zone Enterprise (QEZE) Sales Tax Certification - issued by the Department of Tax and Finance. If approved, a business would receive a DTF-81, QEZE Sales Tax Certification. The business may begin to make exempt purchases using form ST-121.6, QEZE Exempt Purchase Certificate, as of the effective date shown on its DTF-81.
Real Property Tax Credit: A credit for real property taxes paid based on a formula that considers job creation, wages and benefits or investments made in the zone. Further calculations may apply depending on a business’ location in either an Investment Zone or Development Zone. This credit is available for 10 years and unused credits may be obtained as a cash refund in the year they were earned.
Tax Reduction Credit: A credit against tax equal to a percentage of income taxes attributable to the zone enterprise based on its employment growth in the zone. This credit is available for 10 years and can reduce a company’s tax liability to zero – eliminating the alternative minimum and fixed dollar minimum tax. The NYS Department of Tax and Finance provides more information on Empire Zone tax incentives.
Local Benefits
Municipalities designated as Empire Zones may also offer additional incentives including sales tax refunds, and property tax abatements for real property improvements in the Zone. Many utility companies (including gas, electric and telephone services) also offer rate reductions to certified Empire Zone businesses. Check with the local zone administrator to see what additional reductions are available in your municipality.
there should be a closer watch on those who apply and are awarded empire zone status. There are those who use it and there are those who abuse it!
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
The empire zone is the only lure the state could hand out to entice businesses in NYS to stay or move here. However, the state, DEC, county, town taxes, laws and regulations are still killing the businesses. The empire zone is just a cushion for the major blow this stateplaces on businesses. IMHO
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
so you are you saying our state is a form of socialism or communism built on the back of capitalism?
I'm saying.......
1,970,000 residents left nys since 2000 due to high taxes and business closures. More than any other state.
$25,676.00 is the tax burden for a family of 4.
180,000 private sector jobs left nys last year in which nys is 49th in the nation.
So what has the empire zone done for this state?
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
unfortunately the exodus is on the capitalist side not the socialist side
the need keep writing laws for the sake of writing and protecting me from myself is killing to many trees and causing me to spend to much on Electric Grid
Logged
The timing of this is funny. The State yesterday announced it's fixin to yank Empire Zone bene's from Center City{yet another KRAT white elephant/taxpayer sinkhole Downtown}, Parker Inn and Glenville Industrial Depot {for failure to create promised jobs}. 
