April 2002

23 Empire Zone Companies Create $12.5 Million In New Investment

An annual business report just compiled for Empire State Development shows that 23 Cortland companies were Zone certified from August 1 to December 31, 2001. The companies, with a combined employment base of 374 and a total gross payroll of $12.8 million, invested $12.5 million in real property, plant facilities, production and other equipment in Cortland during the first five months of Zone operation.

In return for that investment, the companies received an estimated $102,000 in wage tax credits, $565,828 in investment tax/employment incentive tax credits, $39,053 in QEZE benefits, $194,000 in real property tax credits and $26,164 in QEZE tax reduction credits. Zone qualified companies pay local property taxes and are reimbursed a portion of those taxes by New York State.

Companies are certified locally, with applications being jointly approved by Empire State Development and the New York State Department of Labor. Cortland companies certified in 2001 included:

In addition, the Cortland Zone Administrative Board approved $750,000 in community development project credits for the Cortland Regional Medical Center capital campaign, enabling major donors to receive New York State tax credits for qualified gifts.

"This is an impressive level of Zone activity," noted BDC Director Linda Hartsock. "It's due to the hard work and technical expertise of Zone Coordinator Karen Niday who has met individually with these and other companies to help them understand the myriad of benefits associated with the Zone program. It's also a testament to the companies who are choosing to invest locally because of the program. The list of certified companies demonstrates the diversity of the program which benefits businesses of all sizes."

"We continue to see great interest in the program, with 13 new companies also certified in the first quarter of 2002," added Niday. "The process is simple, with a straightforward one-page application form that establishes some baseline figures against which to measure employment and investment. We encourage companies in Cortland to call the BDC or visit our web site to learn more about the program and determine if it is applicable to their business."

Detailed information is available on the BDC/IDA web site (www.cortlandbusiness.com) which includes a technical explanation of Zone incentives with links to the New York State Department of Tax and Finance, a Zone map and a Zone calculator program that can help explore how the program can work for individual businesses. Empire Zone certified businesses can enjoy a range of incentives depending on the specifics of the project, including:

• Wage Tax Credit
• Investment Tax Credit
• Investment Tax Credit Employment Incentive
• Zone Capital Credit
• Real Property Tax Abatement
• Real Property Tax Credit
• Tax Reduction Credit
• Sales Tax Exemption
• Sales Tax Refund
• Utility Rate Reductions

Up to two square miles is currently designated in the Cortland Zone, with a Zone boundary amendment currently underway to expand the Zone into other areas of the County.