Real
Property Tax Credit
The Real Property Tax Credit is applied against NY state business-related
income taxes and is based on the number of jobs and the real property taxes
paid on the property in the Zone.
Credit for Real Property Taxes =
Real Property Tax Paid X Employment Increase Factor
The
Real Property Tax limitation
Businesses Certified prior to 4/1/05 is the greater of:
$10,000 times each new employee, or
10 percent of the QEZE's federal basis multiplied by its percent of
physical occupancy in the zone property, or
10 percent of the QEZE's federal basis multiplied by its percent of that
basis attributable to construction, rehabilitation or the expansion of
the zone property. (If the construction, et al percentage is 50 percent
or greater, then the percent is deemed to be 100 percent)
Businesses
Certified after 4/1/05
Wages/Benefit formula or capital investment amount not to exceed RP
taxes:
Wages/Benefits formula -
25 percent of total wages and benefits to net new employees, capped at
$10,000 per new job
(wages/ benefits over $40,000 excluded)
Capital Investment Amount -
10 percent of the federal basis of the real property and the greater of:
-- the percent of such property occupied and used by the QEZE or related
person, or,
-- the percent of such cost or other basis attributable to construction,
rehab, or expansion of zone property.
If more than 50 percent, then the percentage is deemed to be 100 percent
Includes cost of acquisitions
IT-606
(Real Property Tax Form)
IT-606
(Instruction Form)