The proposal would require businesses currently receiving Empire Zone benefits be subject to a re-certification review.  If the company could not demonstrate a 20 to 1 ratio of in-zone wages, benefits and capital investments over tax credits used, they would lose future Empire Zone credits, and forfeit any zone credits carried forward from previous tax years.

Today more than 9,800 companies are eligible for Empire Zone benefits, and last year they accounted for 380,000 jobs and hundreds of millions in capital investments.

The Business Council is strongly opposed to the retroactive imposition of compliance criteria on Empire Zone participants. This proposal would adversely affect many zone participants, including many that have made multi-million dollar investments based on zone incentives.

We believe this proposal would cause tremendous harm to the state’s future economic development efforts, by calling into question the state’s willingness to honor commitments.