This QEZE benefit has been changed to a refund effective September 1, 2009, and is only available to businesses who were certified in the Poughkeepsie/Dutchess Empire Zone before April 1, 2009.
For more in-depth information please see Technical Service Bureau Memo 09 (12) and Notice 09_14
All forms that are mentioned in this page are available in the Incentives and Tax Forms section of this website.
Businesses certified on or after April 1, 2009: This benefit is not available to you.
Businesses certified before April 1, 2009:
Eligibility
• A business enterprise certified by ESD before April 1, 2009, that has already been issued Form DTF-81 is eligible for a refund or credit of tax paid on or after September 1, 2009, on qualifying purchases after it receives its EZRC from ESD. The sales tax benefit period for the business is unaffected and continues to run for 120 months from the effective date on Form DTF-81. The business must pass the employment test for the tax year in which a refund or credit is claimed.
• A business enterprise certified by ESD before April 1, 2009, that has received an EZRC but has not yet applied for Form DTF-81 is eligible for a refund or credit after it has filed the appropriate QEZE application (see Forms DTF-82, DTF-83, and DTF-84) and received Form DTF-81 from the Tax Department. QEZE sales tax benefits are not retroactive; the benefit period is 120 months from the effective date on Form DTF-81. The business must pass the employment test for the tax year in which a refund or credit is claimed.
How to claim the refund
Businesses who are eligible to claim this benefit have to file form AU-12 with the NYS Department of Tax and Finance. In addition, to demonstrate that the business passes the employment test, businesses certified prior to April 1, 2005 have to submit Form AU-12.1; businesses certified on or after April1, 2005 and before April 1, 2009 submit Form AU-12.2. Please see the instructions to Form AU-12 for further details on filing requirements.
Please note:
- A claim for refund under this provision ( section 1119(d) of the Tax Law) may be filed only once each sales tax quarter.
- Form AU-11, Application for Credit or Refund of Sales or Use Tax, cannot be used to claim a refund under section 1119(d).
Purchases eligible for a QEZE refund or credit
For purchases and uses of property and services to be eligible for a refund or credit, the property or services must be directly and predominantly used or consumed by the QEZE in an Empire Zone in which the QEZE has qualified for benefits. For purposes of the refund or credit, predominantly means 50% or more (or at least 50%).
All tangible personal property eligible for the sales and uses tax exemption must be predominantly (50% or more) used or consumed by the QEZE, including:
- Motor vehicles, if they are predominantly used by the qualified business, and if they predominantly originate and terminate at the Zone facility.
- Automotive parts and gasoline for these qualifying vehicles are also eligible, however a different procedure applies.
- All tangible personal property sold to a contractor, sub-contractor or repairman used in construction on property owned by a QEZE.
Services must be used directly and exclusively by the qualified business in the Empire Zone, including utilities. For telephone, the service must be delivered and billed to the business at an address in the Zone.