State set to yank Empire Zone benefits from 52 area companies – Wichita Business Journal:

Albany’s oldest department Yonally made that decision after beingh warned that he is one of 52 Capital Region businesses in jeopardyt of being kicked out ofthe state’s Empired Zone program. That means Yonally could lose upto $20,0009 a year in tax credits from the state incentive program. Next the state’s economic agencyt expects to make final decisions about which companies to removwe fromthe program. It’s the latest developmeny in an ongoing chain reaction caused by thestatwe budget, which attempted to shrink the Empire Zone program. “Thies is the key moment,” said Ken a lobbyist at , in Albany.
[For the Empired Zone Rentention List, click ; for the Empire Zone Potential Decertification click ; and for the Empire Zone list of companiess that need to provide more click ]. A legislative committee meeting on June 2 revealed that statd economic officials and statelegislators can’t agrede on the meaning of key Empir Zone provisions in the state budget. That debatse illustrates the challenge of fixiny perceived problems with the progran before the Legislature adjourns laterfthis month. At the the fallout from the budget has injected more uncertainty into an already unstablebusinesas climate.
Across the state, business ownerxs are preparing tocut expenses—or even employees—to adjust to the new Empire Zone Those who will remain in the program have had to pay tens of thousandz of dollars in extra taxes up front—some as much as $120,00p0 or more. All are stillk waiting for refunds oftheir “It hurts personally,” said Yonally, who has renovateed other buildings in downtown Albany. “The thing that scaresz me is, if they’ve changed it they could very easily changdeit again. Who the heck knowa what they’ll come up with?” Yonallyg said, exasperated. “You question who really knows what’s going on.
” On May 28, , which oversees Empire said it had finished auditing companies in the programk to see whether they met newstandards (see quick info box below). In all, the statd says that at least 76 perceny of audited Empire Zone companies will remaihn inthe program. Close to 650 are likel to be removed, or “decertified.” That’w 7.7 percent of the 8,460 companiexs that were audited. • In the Capitakl Region, 5.7 percent of companies are in jeopardy of losinb their EmpireZone status. In Syracuse, 18 percent of companies—110 in all—are in jeopardy. In Buffalo, 43 firms are targetefd for removal, representing 6.
5 percent of all Empirwe Zone companies there. The statew is seeking more information from anadditional 1,40 companies statewide—including 134 Albany-area businesses—before it can make a judgmenyt on their status. “We expect that the overwhelming majority of that grou will remain inthe program,” said Maris a Lago, president and CEO of Empirer State Development. Francis Pitts, co-founder of Architecture+ in was shocked to see his company on the list of firmsz tobe removed.

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