New York Laws
Article 18-B - New York State Empire Zones
957 - Definitions.

(a) "Applicant" shall mean the county, city, town or village
submitting an application in the manner authorized by local law for
designation of an area as an empire zone.
(b) "Commissioner" shall mean the commissioner of economic
development.
(c) "Minority-owned business enterprise" shall have the same meaning
as provided in section three hundred ten of the executive law.
(d) "Empire zone" shall mean an area within the state that has been
designated as an empire zone pursuant to this article and:
(i) all empire zones designated under paragraph (i) of subdivision (a)
and subdivision (d) of section nine hundred fifty-eight of this article
shall be referred to as "investment zones" and shall be wholly contained
within up to three distinct and separate contiguous areas; provided,
however, that empire zones designated prior to the enactment of this
paragraph shall identify up to three distinct and separate contiguous
areas, which shall equal up to their total allotted acreage at the time
of designation by January first, two thousand six. Provided however, the
existing zone must include as much designated acreage into the distinct
and separate contiguous areas as possible. Provided, however,
notwithstanding the provisions of paragraphs (i) and (ii) of subdivision
(a) of section nine hundred fifty-eight and subdivision (d) of section
nine hundred fifty-nine of this article a regionally significant project
may be located outside of the investment zone's distinct and separate
contiguous areas, provided such significant project is located within
the zone applicant's municipal boundaries. Provided further however, if
the investment zone is located in a county that does not have a
development zone such significant project may be located within the
county's boundaries. For the purpose of this article a "regionally
significant project" shall mean: a manufacturer projecting the creation
of fifty or more jobs; or an agri-business or high tech or biotech
business making a capital investment of ten million dollars and creating
twenty or more jobs; or a financial or insurance services or
distribution center creating three hundred or more jobs; or a clean
energy research and development enterprise shall be eligible as a
regionally significant project as determined by the local zone
administrative board and commissioner. Other projects may be considered
by the zone designation board;
(ii) all empire zones designated under subdivisions (b) and (c) of
section nine hundred fifty-eight of this article shall be referred to as
"development zones" and shall be wholly contained within up to six
distinct and separate contiguous areas. However, an empire zone located
in more than one county at the time of designation shall be wholly
contained in up to twelve distinct and separate contiguous areas.
Provided, however, that empire zones designated prior to the enactment
of this paragraph shall identify up to six distinct and separate
contiguous areas, which shall equal up to their total allotted acreage
at the time of designation, by January first, two thousand six or in the
case of an empire zone located in more than one county, at the time of
designation shall identify twelve distinct and separate contiguous
areas. Provided however, the existing zone must include as much
designated acreage into the distinct and separate contiguous areas as
possible. Provided, however, a regionally significant project may be
located outside of the development zone's distinct and separate
contiguous areas. For the purpose of this article a "regionally
significant project" shall mean: a manufacturer projecting the creation

of fifty or more jobs; or an agri-business or high tech or biotech
business making a capital investment of ten million dollars and creating
twenty or more jobs; or a financial or insurance services or
distribution center creating three hundred or more jobs; or a clean
energy research and development enterprise shall be eligible as a
regionally significant project as determined by the local zone
administrative board and the commissioner. Other projects may be
considered by the zone designation board;
(iii) provided, however, a zone may apply to add one additional
distinct and separate contiguous area, pursuant to paragraphs (i) and
(ii) of this subdivision, to such zone upon the demonstration of need,
provided, however, such additional distinct and separate contiguous area
shall not result in an empire zone that exceeds the maximum allotted
acreage;
(iv) a "development zone", pursuant to paragraph (ii) of this
subdivision, shall apply, pursuant to subdivisions (a) and (d) of
section nine hundred fifty-eight of this article, to have up to three
distinct and separate contiguous areas defined as "investment zones",
pursuant to this subdivision;
(v) any certified businesses located outside of the empire zone's
distinct and separate contiguous areas, pursuant to this section, shall
be allowed the empire zone benefits until they are decertified; and
(vi) the boundaries that comprise the distinct and separate contiguous
areas in this subdivision must include at least the real property on one
side of a public thoroughfare when such street is used as a boundary. No
boundary shall be constructed as to connect one tax parcel to another
tax parcel by using a thoroughfare's center line, sidewalk or other
similar means of connecting a non-contiguous area to the zone's distinct
and separate contiguous areas.
(e) "Local empire zone administrative board" shall mean the entity
designated by the applicant that is responsible for recommending
business enterprises for certification pursuant to paragraph (iii) of
subdivision (a) of section nine hundred fifty-nine of this article and
for monitoring, evaluating and coordinating all empire zone benefits on
behalf of the applicant. Such entity shall consist of at least six
members, and shall be representative of local businesses, organized
labor, community organizations, financial institutions, local
educational institutions and residents of the empire zone.
(f) "Women-owned business enterprise" shall have the same meaning as
provided in section three hundred ten of the executive law.
(g) "Locally owned business enterprise" shall mean (i) a business firm
in which the total ownership interest held by individuals who are full
time bona fide residents of such zone is more than eighty percent, whose
business activities are conducted in a manner whereby at least fifty
percent of the assets of such firm are located and utilized in such
zone, and at least forty percent of such firm's employees are
principally employed in such zone; or (ii) an agricultural cooperative
established pursuant to section one hundred eleven of the cooperative
corporations law; provided however, for business firms located within
zones designated in a city such individuals shall reside within a
community planning board or within traditional neighborhood boundaries
and provided further however for business firms located within zones
outside of a city such individuals may reside in the county in which the
zone is designated.
(h) "Chief executive" shall mean (i) a county executive or manager of
a county; (ii) in a county not having a county executive or manager, the
chairperson or other presiding officer of the county legislative body;
(iii) a mayor of a city or village, except where a city or village has a

manager, it shall mean such a manager; or (iv) a supervisor of a town,
except where a town has a manager, it shall mean such manager.
(i) "Minority group member" shall have the same meaning as provided in
section three hundred ten of the executive law.
(j) "Targeted employee" shall mean a New York resident who receives
empire zone wages pursuant to subdivision nineteen of section two
hundred ten of the tax law and who is (i) an eligible individual under
the provision of the targeted jobs tax credit (section fifty-one of the
internal revenue code), (ii) eligible for benefits under the provisions
of the job training partnership act (P.L. 97-300, as amended), (iii) a
recipient of public assistance benefits, or (iv) an individual whose
income is below the most recently established poverty rate promulgated
by the United States department of commerce, or a member of a family
whose family income is below the most recently established poverty rate
promulgated by the appropriate federal agency.
An individual who satisfies the criteria set forth in clause (i), (ii)
or (iv) of this subdivision at the time of initial employment in the job
with respect to which the credit is claimed, or who satisfies the
criterion set forth in clause (iii) of this subdivision at such time or
at any time within the previous two years, shall be a targeted employee
so long as such individual continues to receive empire zone wages.
(k) "Single enterprise" means two or more related business enterprises
characterized by an absence of arms length relationships found among
enterprises that are not integrated. Factors to be considered, among
other things, in determining the existence of a single enterprise are
interrelation of operations, common management, centralized control of
labor relations, common ownership and common financial control.
(l) "Zone administrative entity" shall mean a community-based local
development corporation or entity contracting with the local empire zone
board pursuant to paragraph (viii) of subdivision a of section nine
hundred sixty-three of this article or the municipality in which the
zone is located in those instances where the municipality actively
participates in the local administration of the zone program.
(m) "Human resource development" shall mean job preparation and
placement, skills training and education for zone residents and
employees of zone businesses, child and family care services and
facilities, and activities to improve the health benefits and other
benefits provided by zone businesses to their employees.
(n) "Community development projects" shall mean projects sponsored by
not-for-profit organizations which have been approved by the zone board,
which will advance the zone development plan. For purposes described in
subdivision twenty of section two hundred ten, subsection (l) of section
six hundred six, subsection (d) of section fourteen hundred fifty-six
and subdivision (h) of section fifteen hundred eleven of the tax law,
such projects shall be limited to child care programs serving zone
residents and businesses; community development projects in direct
support of economic development and business revitalization activities,
such as commercial revitalization projects; and business development
activities of local development corporations.
(o) "Zone equivalent area" shall mean an area designated as such
pursuant to former subdivision (bb) of section nine hundred fifty-nine
of this article.
(p) "Cost benefit analysis" shall mean, for purposes of paragraph
(iii) of subdivision (a) of section nine hundred fifty-nine of this
article, a method of determining whether to certify a business
enterprise based on the business enterprise's projected job creation
and/or investment in the zone versus the total amount of empire zone tax
benefits the business enterprise will potentially be allowed to use and

have refunded to it and shall be a ratio of at least 10:1 for
manufacturing enterprises and 20:1 for all other business enterprises,
the numerator of which is the sum of (i) the estimated value of all
wages and benefits paid for the first three years of certification to
all existing and projected employees of the business enterprise in the
zone and (ii) the estimated value of capital investments for the first
three years of certification in the zone, and the denominator of which
is the estimated amount of total empire zone tax benefits that may be
used and may be refunded for the first three years of certification.
(r) "Clean energy research and development enterprise" shall mean any
electric generating facility that used pulverized coal technology,
circulating fluidized bed technology or integrated gasification combined
cycle technology and that is capable of capturing carbon dioxide for
sequestration or capable of being retrofitted to capture carbon dioxide
for sequestration.
(s) "Qualified investment project" shall mean a project (i) located
within an empire zone, (ii) at which five hundred or more jobs will be
created, provided such jobs are new to the state and are in addition to
any other jobs previously created by the owner of such project in the
state, and (iii) which will consist of tangible personal property and
other tangible property, including buildings and structural components
of buildings, described in subparagraphs (i), (ii), (iii), (iv) and
clause (A) or (C) of subparagraph (v) of paragraph (b) of subdivision
three of section two hundred ten-B of the tax law, the basis of which
for federal income tax purposes will equal or exceed seven hundred fifty
million dollars. Provided however, the owner of such project does not
employ more than two hundred persons in the state at the time such
project is commenced.
(t) "Significant capital investment project" shall mean a project (i)
located within an empire zone, (ii) which will be either a newly
constructed facility or a newly constructed addition to or expansion of
a qualified investment project, consisting of tangible personal property
and other tangible property, including buildings and structural
components of buildings, described in subparagraphs (i), (ii), (iii),
(iv) and clause (A) or (C) of subparagraph (v) of paragraph (b) of
subdivision three of section two hundred ten-B of the tax law, the basis
of which for federal income tax purposes will equal or exceed seven
hundred fifty million dollars, (iii) which is constructed after the
basis for federal income tax purposes of the property comprising such
qualified investment project equals or exceeds seven hundred fifty
million dollars, and (iv) at which five hundred or more jobs will be
created, provided such jobs are new to the state and are in addition to
any other jobs previously created by the owner of such project in the
state.