August 2001

Cortland County BDC Ready to Certify Empire Zone Businesses

Cortland, NY -- The Cortland County Business Development Corporation (BDC) is now ready to begin certifying businesses for eligibility in New York State's Empire Zone Program. Cortland County Empire Zone Coordinator Karen Niday has completed training by the Empire State Development Corporation, and is now available to meet with eligible businesses to begin the certification process.

To become Zone certified, companies must commit either to making an investment, or to maintaining or increasing employment in an area that has been approved by New York State as part of Cortland's Zone. Companies must apply to the BDC for "Qualified Empire Zone Enterprise" (QEZE) certification, which also needs to be jointly approved by Empire State Development and the New York State Department of Labor. Final determinations as to eligibility and interpretation of benefits will be made by the New York State Department of Taxation and Finance.

Cortland's Zone includes 1,280 acres, or two square miles of the County. Based on eligibility requirements, 630 acres have been designated in the City of Cortland, with 298 acres of "nearby lands" in Cortlandville and Homer also included in the Zone boundaries. The steering committee has also "land-banked" some acreage for future development, although accessing those lands requires a complex boundary amendment process.

The Empire Zone program was developed by New York State to foster the creation of jobs, enhance the property tax base and encourage investment into Zone businesses and properties. Cortland County was named a new Empire Zone on June 26, 2001.

An Empire Zone location offers financial and tax incentives for new or expanding businesses. This can mean significant savings for corporations and investors through a variety of resources and opportunities for businesses exploring start-up or expansion projects. The state and local benefits include tax credits, property tax abatements and local incentives. Specifically, these typically include:

• A Wage Tax Credit for new hires which ranges per new full time job created
• Investment Tax Credits for qualified investments
• A Real Property Tax Abatement program
• An exemption on state sales tax
• A credit against personal or corporate taxes for investments in a certified Zone business
• Preferred utility rates
• Assistance from the New York State Department of Labor with matching job seekers with employment opportunities

Cortland County has established a Zone Administrative Board (ZAB) to oversee the administration of the Empire Zone. The ZAB Chairman is the Chairman of the Cortland County Legislature, and six ZAB members were recently appointed and approved by the County Legislature. The executive director of the Cortland BDC serves as Zone Certifying Officer. The BDC is responsible for Zone administration, marketing and reporting to New York State, as well as coordinating other business financing and support activities to augment the Zone activities.

For more information, or to schedule an appointment to discuss certification, contact Zone Coordinator Karen Niday at(607) 756-5005.