Other ways New York State supports business growth in the Zone

• Besides providing tax credits and lower utility rates, New York State offers the resources of several State agencies to businesses, residents and employees in the Zone.
• The NYS Urban Development Corporation can provide financing for business growth.
• The State Office of Business Permits and Regulatory Assistance works with local government to expedite the issuance of both State and local business permits and licenses.
• The Job Service Division of the State Department of Labor, the State Education Department, the Department of Social Services, and the Job Training Partnership Council combine their efforts with those of local agencies in government procurement contracts, export sales, and other business services.

Local Incentives

The Lackawanna Empire Zone's package of local incentives further enhances the advantages of locating your business in our zone. These incentives include:

• Exemption from Real Property Tax
  Your company can qualify for a real property tax exemption on improvements to property within the Zone. Tax exemptions are available to Zone businesses, and include retail business and sole proprietorships with exemptions as follows: 100% for years 1-7; 75% for year 8; 50% for year 9; and 25% for year 10, with full taxation the 11th year.
  
  
• Utility Rate Reductions
  Additionally, special rates averaging 40-60% reduction in utility costs are offered by Niagara Mohawk Power Corporation to companies based on service classification and amount of usage. Reductions apply to increased usage over and above existing usage and special rates for new businesses with demand charge waived.
  
  
• New York State Telephone Rate Reduction
  Your company can reduce telephone rates up to 5% for intrastate and intraLATA charges for service when you locate in the Lackawanna EZ.
  
  
• Erie County Industrial Development Agency (ECIDA) Financial Aid
  The ECIDA can finance the acquisition, construction or reconstruction of manufacturing, warehousing, research, industrial and pollution control projects by issuing negotiable, tax-exempt bonds and notes. In some cases the bonds may be taxable. Benefits of ECIDA financial aid include:
• 100% financing including equipment, planning and financial expenses.
• A tax-exempt rate on most bonds, considerably less than the rate on conventional financing.
• No sales tax on material and equipment purchased during the construction period from proceeds of the bond issue.
• Favorable payments to local taxing authorities in lieu of real estate taxes may be negotiated.

State Incentives

• Job Training Grants
  Training grants are available to qualified Zone companies. Your company may use these funds for employee training, skills upgrading and productivity enhancement. You may also use the funds to finance a portion of the cost of construction and/or equipping a training facility.
  
  
• Feasibility Study Grants
  Grants of up to $50,000 are available through New York State for eligible not-for-profit organizations to conduct site specific feasibility studies. Your not-for-profit company may use these funds for environmental assessments, financial and legal analysis and other service associated with feasibility studies.
  
  
• Wage Tax Credit
  Allows a wage tax credit for the franchise taxes on business, bank and insurance corporations and the personal income tax to taxpayers based on the number of full-time equivalent employees they employ in their EZ business. This credit is $1,500 for targeted employees paid at least 135% of the minimum wage and $750 for other individuals employed in jobs for a zone certified business. A targeted employee is defined as someone who resides in the EZ or is currently receiving public assistance such as welfare, disability, workers compensation or unemployment compensation. Currently the federal government has added an additional $2,100 wage tax credit for any company hiring a targeted employee. The wage tax credit is available to commercial, retail and industrial companies for five consecutive years starting from the time EZ wages are initially paid.
  
  
• Investment Tax Credit
  Only a manufacturing/recycling business qualifies for an investment tax credit of 10% to business corporations or 8% for personal income tax for building costs and the purchase of industrial machinery and equipment other than rolling stock. This credit may be taken advantage of one time by a company during its designation as a zone certified company. The credit for building cost plus machinery and equipment can be lumped together at the same time in order to take maximum advantage of this credit. This credit does not apply to property leased by a taxpayer to someone else. The franchise tax on business corporations provides an additional 3% credit (30% of the EZ investment tax credit) may be allowed in each of the three years following the year in which the EZ investment tax credit was taken. To qualify for this second credit, known as the EZ-EIC, the taxpayer must employ in the EZ (excluding general executive officers) at least 101% of the average number of people employed in the year before the EZ investment tax credit was claimed.
  
  
• Sales Tax Credit
  Available only for the purchase of building materials used in connection with construction of commercial or industrial properties and structures. No credit is allowed for the purchase of tools, ladders and scaffolding.