August 2003

Cortland Empire Zone Releases Annual Report
Zone Certified Companies Make $21 Million In New Investments and Create 178 New Jobs In 2002

Cortland, NY -- An Empire Zone annual business report recently compiled for Empire State Development shows that 80 Cortland companies were Zone certified from January 1 to December 31, 2002. Zone companies, with a combined employment base of 2,139 full-time and 268 part-time workers, and a total gross payroll of $67.5 million, invested $21 million in real property, plant facilities, production and other equipment in Cortland during the last fiscal year of the Zone program. Zone companies also created 178 new jobs in Cortland County in 2002.

In return for that investment, the companies received an estimated $266,722 in wage tax credits, $504,298 in investment tax credits, $439,196 in real property tax credits and $39,779 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. There are currently 120 Zone certified companies in Cortland County.

The Cortland Zone Administrative Board approved $750,000 in community development project credits for the Cortland Regional Medical Center capital campaign in 2001, enabling major donors to receive New York State tax credits for qualified gifts. Approximately $208,500 of those credits were issued to campaign donors in 2002. In 2002, the Zone Advisory Board approved $500,000 in community development project credits for the Cortland Sports Complex, to facilitate its fundraising efforts. Approximately $26,704 of those credits were issued to campaign donors in 2002. Also in 2002, the Zone Advisory Board approved $200,000 in direct equity tax credits to Hope Lake Investors for qualified equity investments in a major development project being proposed there. Approximately $75,000 of those equity investment credits have been issued to date.

"This continues to be an excellent level of Zone activity," noted BDC Director Linda Hartsock. "All the credit for the Zone's success goes to Zone Coordinator Karen Niday who works closely with our local 120 Zone companies to help them understand the complex factors associated with the program. The 178 new jobs created in 2002 are across all sectors, and primarily in small and mid-sized businesses, which helps stabilize our overall business base."

Detailed information on the Zone program is available on the BDC/IDA web site which includes a technical explanation of incentives, links to the New York State Department of Tax and Finance and a Zone map.

Empire Zone certified businesses can enjoy a range of incentives depending on their level of investment and job creation, 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