Below is information about financial and incentive programs available for industrial properties. For further assistance, please contact the Brooklyn Chamber of Commerce's Director of Industrial and Manufacturing Services email@example.com, or at 718-875-1000 ext. 140.
Empire Zone (EZ)
New York State Empire Zones offer vacant land, existing industrial and commercial buildings, skilled workers and ample power and water resources. Businesses could qualify to become tax-free if they expand in or relocate to one of Brooklyn's three Empire Zones in North, East and Southwest Brooklyn. The enhanced benefits include Sales Tax Exemptions, Credit for Real Property Taxes, Tax Reduction Credit, Wage Tax Credit, Investment Tax and Employment Incentives Credit, New Business Refund, Utility Rate Savings, Zone Capital Credit, Sales Tax Refund, Real Property Tax Abatement and Technical Assistance.
Empire Zone Equivalent Area (EZA)
NYS EZs offer vacant land, existing industrial and commercial buildings, skilled workers and ample power and water resources. Businesses could qualify to become tax-free if it expands in or relocates to one of Brooklyn's three Empire Zones – North, East and Southwest Brooklyn. The enhanced benefits include Sales Tax Exemptions, Credit for Real Property Taxes, Tax Reduction Credit, Wage Tax Credit, Investment Tax and Employment Incentives Credit, New Business Refund, Utility Rate Savings, Zone Capital Credit, Sales Tax Refund, Real Property Tax Abatement and Technical Assistance. An Empire Zone Equivalent Area shares a few, but not nearly all, of an Empire Zone’s characteristics. An investment made in a Zone Equivalent Area does not amount to an investment in an Empire Zone. Eligibility and incentives in EZA are determined by several factors, including employment level and in-state business activity.
Industrial & Commercial Incentive Program (ICIP)
Partial real estate tax abatements and industrial exemptions to qualified properties with at least 25% of space used for manufacturing.
Industrial Development Agency (IDA) / Small Industry Incentive Program (SIIP) / IDA Industry Incentive Program (IIP)
For manufacturers, distributors, warehousers and other industrial companies that are seeking to acquire, construct or renovate facilities within Brooklyn. The program enables qualified industrial companies to receive a waiver of sales tax on construction materials, a waiver of mortgage recording tax and a 25-year term of real property tax abatement and exemption.
Investment Tax Credit (ITC)
Businesses that create new jobs and make new investments in production property and equipment may qualify for tax credits of up to 10% of their eligible investment. New businesses may elect to receive a refund of certain credits, and all unused credits can be carried forward for 15 years.
Linked Deposit Program (LDP)
Program provides eligible businesses to obtain loans from commercial banks, savings banks, savings and loan associations and farm credit institutions. LDP assists businesses with low-rate loans to modernize facilities and operations, access new markets, develop new products and improve overall competitiveness. The interest rate on "linked" loans is two or three percentage points lower than the prevailing rate, thereby making borrowing less expensive. Businesses may receive up to $1 million in assistance. Call the Empire State Development toll free at 800-782-8369.
Tax Reductions for Manufacturing Firms
As a result of legislation approved May 15, 2000, industrial companies may take a tax credit for amounts paid to their electric, gas and steam utilities for gross receipts and related taxes. These taxes comprise approximately 3.4 percent of a business' electric gas and steam utility.
Relocation and Employment Assistance Program (REAP)
REAP is designed to encourage qualified businesses to relocate employees to targeted areas of the City. The program provides business income tax credits of from $500 to $3,000 per employee per year for twelve years based on the number of qualified jobs connected to the relocation.