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Federal Empowerment Zones The
federal Empowerment Zone (FEZ) program in New York focuses on the creation of
self-sustaining, long-term economic development in designated distressed urban
areas. New York State has one Round I FEZ, located in New York City; and two
Round III FEZs, located in the cities of Syracuse and Yonkers. The initiative is
based on a holistic, participatory approach that requires community stakeholders
to work together to develop and implement comprehensive strategic plans for
revitalization.
The New York City FEZ In New York, the State and City of New York each
committed to match the federal $100 million grant award, providing a total $300
million in grants for the New York City Empowerment Zone (NYCEZ). Two local
development corporations were designated to administer the FEZ: the Bronx
Overall Economic Development Corporation (BOEDC) in the South Bronx; and the
Upper Manhattan Empowerment Zone Development Corporation (UMEZ) in Upper
Manhattan. The NYCEZ designation is effective for 15 years, from January 1, 1995
to December 31, 2009.
The NYCEZ has been re-focused as a job-generating, business-based economic
development program in full partnership with the distressed communities it
serves, thus leveraging private sector investment. The FEZ funds may be used for
loans, loan guarantees, grants, and equity investments. The New York Empowerment
Zone Corporation (NYEZC), a subsidiary of the Empire State Development
Corporation, provides oversight and final funding approval for all projects.
NYCEZ Overview
| Jobs created |
5,942 |
| Number of projects approved by the NYEZC |
146 |
| FEZ dollars approved/disbursed (in millions) |
$228.6/$159.2 |
| Private funds leveraged by FEZ dollars (in millions) |
$898.6 |
Syracuse and Yonkers FEZs
The Syracuse and Yonkers FEZ designations are
effective for 8 years, from January 1, 2002 to December 31, 2009. As with the
NYCEZ, these two Round III FEZs offer various tax incentives; however, the
designations do not include dedicated program funds.
If your business is located in a FEZ, it may be eligible to apply for:
- Loans, grants, and equity investments;*
- FEZ wage credits up to $3,000 per employee per year;
- Increased Section 179 deduction, up to $35,000 in additional expensing;
- Tax-exempt Enterprise Zone Facility Bond financing;
- Qualified Zone Academy Bonds;
- Non recognition of gain on sale of FEZ assets; and
- Partial exclusion of gain on sale of FEZ stock held for at least 5
years.
*These benefits only apply to the NYCEZ.
Federal Renewal Communities
The Renewal Community (RC) initiative
involves partnership amongst federal, state, and local governments; local
businesses; and community organizations to stimulate economic development in
federally-designated distressed communities. If your business is active in a
designated area, it may qualify for special federal income tax treatment and
other incentives.
New York State has five designated urban Renewal Communities located in
Buffalo-Lackawanna; Jamestown; Niagara Falls; Rochester; and Schenectady.
The designations are in effect for 8 years, from January 1, 2002 to December
31, 2009.
RC tax benefits include:
- Wage credits up to $1,500 per RC resident employed per year;
- Increased Section 179 deductions – up to $35,000 in additional
expensing;
- Commercial revitalization deductions up to $12 million per RC
annually; and
- Zero-percent capital gains tax rate on qualifying assets held for
more than 5 years.
To determine whether your business is located in a RC or FEZ, go to
http://egis.hud.gov/egis/cpd/rcezec/ezec_open.htm.
For additional information regarding the RCs or FEZs contact Empire
State Development Corporation at (212) 803-3237 or New York Empowerment
Zone Corporation at (212) 803-3240. You may also contact the designated
communities as follows:
Federal Empowerment Zones
New York City Empowerment Zone
Upper Manhattan - The Upper Manhattan Empowerment Zone
Development Corporation, (212) 410-0030 or
http://www.umez.org. South Bronx - The Bronx Overall
Economic Development Corporation, (718) 590-3948 or
http://www.boedc.com.
Syracuse Empowerment Zone
The City of Syracuse, (315) 448-8100 or
http://www.syracuse.ny.us/empowermentZone.asp.
Yonkers Empowerment Zone
The City of Yonkers, (914) 377-6135 or
http://www.yonkersecondev.com/empowerment.php.
Renewal Communities
Buffalo-Lackawanna
The City of Buffalo, (716) 842-6923 or
http://www.ecidany.com/renewal_community.asp.
Jamestown
Greater Jamestown, (716) 483-7654 or
http://www.greaterjamestownez.com/renewal.html.
Niagara Falls
The City of Niagara Falls, (716) 286-4482 or
http://www.nfez.org/econ-dev/commrenew.htm.
Rochester
The City of Rochester, (585) 428-5990 or
http://www.ci.rochester.ny.us/index.cfm?id=65.
Schenectady
City of Schenectady, (518) 382-5049 or e-mail
info@sgedz.org.
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