NYS SENATE PROPOSES MORE CHANGES TO EMPIRE ZONES
The New York State Senate, in a late night session held on Thursday, July 16,
2009, by a vote of 57 – 0, passed changes to the Empire Zones legislation enacted
in April. The changes can be summarized as follows:
• Effective Date of Decertification. The effective date shall not be earlier than
the first day of the taxable year beginning on or after
• Certification in Multiple Zones. In its review of Qualified Empire Zone
Enterprises (“QEZE”) for purposes of the cost benefit analysis, the
Department of Economic Development will consider investment made and
wages paid by a QEZE at all its certified locations combined, rather than
analyzing investment made and wages paid at each location separately.
• Aggregated Analysis. QEZEs which have different federal identification
numbers, but which are related as defined by the Internal Revenue Code,
can elect to be reviewed in the aggregate.
• Entities Certified before August 1, 2002. An entity that was certified prior
to August 1, 2002, and which transferred employees or property from a
related entity will not be decertified if:
• the business enterprise has provided economic returns to the state
in the form of total remuneration to its employees and investments
in its facility greater in value than the tax benefits the business
enterprise used and had refunded to it: AND
• Change of Ownership. A business enterprise that has changed ownership
will only be decertified if the change resulted in the business enterprise
having a different federal tax identification number.
In order for these changes to have any impact on certified entities, the legislation
must also be passed by the New York State Assembly and signed by the Governor.
We have been informed that there is a possibility that the Assembly may return in
September; what they will address at that time is still uncertain. We will continue to
monitor the situation, and alert you of any changes.
Even with the passage of this bill, it is still necessary that any business which
received a Notice of Decertification file a Notice of Appeal within 15 business days
of the date of the decertification letter, and further, file the full appeal with the Zone
Designation Board within 60 days of the date of the decertification letter.