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10 Elm St., Suite 2
Malone, NY 12953
phone: 518-483-8308
fax: 518-483-2900

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Overview of Benefits

New York's Empire Zone program is among the most generous business incentive programs in the nation. New or expanded businesses located in the Franklin County Empire Zone can qualify for cash and tax benefits that reduce or eliminate business taxes.

Most businesses certified prior to April 1, 2005 are eligible for the following benefits for up to 15 years. For businesses certified after this date the benefit period is 10 years and some formulas for determining eligibility and computing benefits have been changed.

Located In Franklin EZ (Certification Not Required)

Sales Tax Refund
Refund of the 4% New York State Sales Tax towards the purchase of building materials for construction and/or renovation of industrial and commercial property, not used exclusively for retail sales.

Certified Franklin EZ Business

Investment Tax Credit (ITC)
A tax credit is available for businesses that make new investments in production, property and equipment. Credit is 10% of the cost for business corporations; 8% for personal income tax.

Employment Incentive Credit (EIC)
Tax credit equal to 30% of the ITC is available in each of the three years following an Investment Tax Credit when the number of employees is at least 101% of the number employed in the EZ prior to the year the ITC was claimed.

Wage Tax Credit (WTC)
Tax credit for each new full time job is available for up to five years. For employees in special targeted groups, this credit equals $3,000 per year, with a credit of $1,500 per year for all other new hires. More information on this credit can be found at the New York State Department of Labor.

New Business Refund
A new business may take up to 50% of unused ITC, EIC and WTC as a refund. Other businesses may carry forward unused credits indefinitely.

Reduced Utility Rate
Reduced rates on electricity and phone service are available for new and expanding businesses.

Qualified Empire Zone Business (QEZE)

Sales Tax Exemption
A 10-year exemption from State sales tax on purchases of goods and services (including utility services and owned vehicles) used predominantly within the zone. Requires an additional application to NYS Department of Taxation and Finance.

Real Property Tax Credit
A tax credit equal to a percentage of real property taxes paid in the zone in proportion to employment increase or capital investment value is allowed property owners and certain lessees as a refundable credit against business or income tax.

Tax Reduction Credit
A tax credit that can reduce or eliminate all New York State tax liability generated by Empire Zone operations. Based on a formula.

Other Benefits

Zone Capital Credit
A 25% tax credit against personal or corporate income taxes is available for direct equity investments in certain certified zone business or for contributions to approved community development projects within the Franklin EZ. more...

Linked Deposit
A public-private partnership from Empire State Development that provides businesses with affordable capital based on bank loans at reduced interest rates. For more information:
Linked Deposit.

Expedited Permitting
Permit applications for businesses located in the Empire Zone are given priority processing.

Additional Information

Applicability of Tax Credits
All tax credits go directly to the taxpayer. For example, the credits would be distributed directly to the shareholders of an S-corporation, the partners of a Partnership or the members of a Limited Liability Company. In the case of a C-corporation the credits remain at the entity level.

For more information
Contact the Zone Coordinator, who can assist businesses locating or expanding in the Franklin County Empire Zone. For additional information see Qualifying as a Franklin County EZ Business or go to the Governor's Office of Regulatory Reform.