t's no secret that New York has long had a reputation as a high-tax state.
      But what many corporate real estate executives may not realize is that this reputation isn't keeping major companies from selecting the Empire State in which to locate profit-making operations.
      What appears to be a taxing issue for some has turned into a windfall for others, thanks to a creative -- and sometimes controversial -- Empire Zone business incentives program.
      If you haven't heard about the EZ solution to taxes in New York, then you probably don't do business there. Those who do know about the program take advantage of it, sometimes to the point of eliminating their property tax liability to the state.
      The issue may seem complex, but it's simple, says Brian McMahon, executive director of the New York State Economic Development Council.
      "You can get your real property tax liability in New York down to zero," said McMahon. "With effective use of the Qualified Empire Zone Enterprises (QEZE) program, a company can receive a sales tax exemption, credit for real property taxes and a tax reduction credit."
      The EZ program, which originated in 1986 as then New York Sen. Jack Kemp was campaigning nationally for a federal empowerment zone program, really didn't flourish in New York until 2001, when the rules for eligibility were expanded to allow more companies to take advantage of it.
      Since 2001, more than 50,000 new jobs have been created by New York companies using EZ incentives. Since its inception in 1986, EZ has produced $US4.1 billion in private capital investment in New York.
      Today, New York funds incentives to 72 Empire Zones, 8,450 businesses, 2,132 manufacturers and 257,775 workers. Many of these are in classic Rust Belt locations that are heavily incentivized to guard against employers leaving New York for greenfield sites in the South.
      That doesn't mean the state is losing money on the deals. Betty McIntosh, an Atlanta-based incentives expert and consultant with Stadtmauer Bailkin Biggins LLC, says that "the average time of payback in New York is 3.7 months."
      "The bottom line is that businesses that qualify have the opportunity to operate in a tax-free environment for 10 years," McMahon says.

Assemblyman James Tedisco, New York Gov. George Pataki and DayStar Technologies CEO John Tuttle (l. to r.) celebrate DayStar’s move to the Saratoga Technology + Energy Park (STEP) facility in Malta. The $40-million solar technology investment illustrates part of the mission of the New York State Energy Research and Development Authority, “to spur economic development in New York State through energy efficiency, research and development and environmental protection programs,” said NYSERDA President Peter Smith.