Commercial Office Space for Lease in a New York State Empire Zone

1625 Buffalo Avenue 

Niagara Office Building

Located in downtown Niagara Falls just down the street from the Seneca Niagara Casino and the Falls.  Prime office space.  Lease as little or as much space as you need.  All amenities.  High speed internet access.  Ample parking.  Convenient to the Rainbow Bridge to Canada just 3 minutes away and 1 mile from the I-190 NYS Thruway.  Lease for as low as $8.50 per square foot (some restrictions apply) including all utilities.  Call Bruce Andrews at 716-285-8221 for information and showings.

Article 18B of the General Municipal Law authorizes the designation of Empire Zones (formerly known as Economic Development Zones) in distressed areas of the state that meet certain unemployment and poverty criteria or have been affected by significant job losses.  The original 1986 law allowed for up to 40 zones to be created, but was subsequently amended.  This year the law was again amended to allow for an additional 6 zones.   Applicants will be competing for one of two 1 square mile and four 2 square mile zones.

Program Purpose

The Empire Zone Program was established to:

1. Encourage business to locate, start-up and/or  expand in targeted areas without jeopardizing other areas of the state;  

2. Revitalize economically distressed areas in large cities and small communities by stimulating private investment;

3. Provide jobs, especially for unemployed and publicly assisted individuals and zone residents; and

4. Reduce poverty, unemployment, public assistance and blighted conditions in the zones.

Zone Benefits

New York State Tax Incentives:

Note:  To qualify for Empire Zone credits, a business must be zone-certified; see description of the certification process below.

Tax Reduction Credit –  This credit is applied against business corporate taxes, personal income taxes, banking corporation taxes, or insurance corporation taxes.  The credit is computed by formula based on the numbers of jobs created, the company’s assets in the zone and in the state, and the income taxes owned by the company.  This credit is available for a 15-year period – 10 years at 100%, decreasing 20% each year thereafter.

Real Property Tax Credit – This credit is applied against business corporate taxes, personal income taxes, banking corporation taxes, or insurance corporation taxes.  The credit is computed by formula based on the numbers of jobs created and the real property taxes paid on property in the zone.  This credit is available for a 15-year period – 10 years at 100%, decreasing 20% each year thereafter.

Sales Tax Exemption – This benefit provides an exemption from the NYS sales tax on goods and services sold to a qualified zone business.  Local governments have the option to participate and may opt to do so on an annual basis.  A company must register with the NYS Department of Taxation and Finance and be issued an exemption certificate.  The certificate is valid for ten years as long as the business meets or exceeds its base period employment number.  

Wage Tax Credit – This credit is available for up to five consecutive years to companies hiring full-time employees in newly created jobs.  For employees in special targeted groups (such as dislocated workers or public assistance recipients), this credit equals $3,000 per year, with a credit of $1,500 per year for all other new hires. 

Investment Tax Credit – Businesses that create new jobs and make new investments in production, property and equipment may qualify for tax credits of up to 19% of the company’s eligible investment. 

Sales Tax Refund – Purchases of building materials to be used in the construction, expansion or rehabilitation of industrial or commercial real property located in an Empire Zone are eligible for a refund of NYS sales taxes.  It does not apply when the property is to be used exclusively by one or more retail vendors.  A similar refund may also be available from the locality (see below).

Zone Capital Tax Credit – A 25% tax credit against personal or corporate income taxes is available for contributing or purchasing shares in a zone capital corporation; or for a direct equity investment in a certified zone business; or for contributions to approved community development projects within an EZ.

Local Incentives (Optional): The applicant and participating taxing jurisdictions may also elect to provide one or more of the following:

Real Property Tax Abatement 485(e) – Provides a local property tax exemption from participating taxing jurisdictions (city, town, county and/or school district) on the increase in assessment that results from improvements made to industrial and commercial property.  Property owners may receive a 100% exemption for up to seven years.  The exemption is scaled down to zero over the final three years of the ten-year life of the exemption.

Sales Tax Exemption -- Exemption from local sales and use tax on goods and services sold to a qualified zone business.  This would be in addition to the exemption offered by New York State.

Sales Tax Refund – Refund of county sales tax paid for building materials used in the construction, expansion or rehabilitation of industrial or commercial real property located in an EZ.  This incentive does not apply when the property is to be used exclusively by one or more retail vendors.

Utility Rate Reductions – Varies by utility.  Businesses that locate or expand their operations in an Empire Zone may receive significantly reduced rates.   These savings can be significant depending upon usage levels.

Permitting Assistance – Procedures for expediting the issuance of required local permits and licenses.

Other Financial Incentives – Other incentives which may be offered to businesses include a preference for IDA private activity bonding authority for projects located in a zone, programs to stimulate small business development, special loan program set-asides, etc.

Eligible Businesses

To become a zone certified business, the following criteria must be met:

*  expectation that jobs will be saved or created  

*  activities of persons employed must occur within the zone  

*  creation of additional employment rather than shifting of jobs from one locality to another or from one business to another

businesses that apply receive tax, utility, or management assistance -  agreement to provide 90-day written notice to the Economic Development Commissioner of any plan to close or partially close a facility or operation within the zone in which 50 or more employees will be affected.

Business Certification Process

1. Complete application on prescribed form which  includes identification of applicant, description of existing and/or new business, employee information, description of new investments, projected employment, and certification forms.

2. Submit to local zone certifying officer – can deny with reasons to Commissioner of Labor and Economic Development

3. If approved, local certifying officer forwards application to Commissioner of Labor and Commissioner of Economic Development.

4.  Commissioner of Labor must approve or disapprove within 15 days.

5. If approved, the Commissioner of Labor authorizes local zone certifying officer to issue joint certification and delivers application to the Commissioner of Economic Development.

6. Commissioner of Economic Development issues approval or denial of application within 10 days.

7. If disapproved, the local certifying officer shall notify the business, specifying the grounds for disapproval.

8. If approved, the local certifying officer issues certificate and forwards to Commissioner of Taxation and Finance.