CCEZ Benefits - QEZE Credit for Real Property Taxes

The Benefits | QEZE Credit for Real Property Taxes

Available for a 10-year period, a Qualified Empire Zone Enterprise (QEZE) is allowed a refundable credit against their business tax equal to the percentage of real property taxes paid in the Zone and the percentage of employment increase.

The tax credit is based on a formula that is the product of two factors:

Percent increase of employment in the Empire Zone

The amount of real property taxes

To be eligible, the QEZE must generally own the property and pay the real property taxes. In cases where the QEZE qualifies for benefits in a leased facilities the following applies:

The taxes are paid under a written lease agreement executed or amended on or after June 1, 2005;

The taxes become a lien on the property during a tax year in which the lessee is both certified and a QEZE; and

The lessee made direct payment to the taxing authority and has received a receipt for the payment from the authority.

Property taxes are paid to the taxing jurisdiction when due, then claimed as a credit on NYS income taxes. A limitation on the amount of the real property tax credit claimed may be limited to the greater of: A) 25% of wages, health benefits & retirement benefits paid to net new employees during the taxable year. The credit may not exceed $10,000 per employee or B) the capital investment limitation calculated at 10% of the cost or other basis is owned by the QEZE multiplied by the greater of: A)the percentage of physical occupancy by the QEZE or related person or B) the percentage of the cost to the construction, expansion or rehabilitation of the real property.

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