By Courtney Dentch
The City Council and Mayor Bloomberg approved legislation last week expanding the Empire Zone business district in Jamaica, which allows enterprises located within the area to take advantage of tax incentives.
The legislation adds 65 acres of land to the zone and must be approved by the Empire State Development Corporation, according to the bill.
The rough boundaries of the newly expanded zone are the Van Wyck Expressway to the west, Sutphin Boulevard to the east, Hillside Avenue to the north, and Liberty Avenue to the south, said Sam Samuels, a spokesman for the Greater Jamaica Development Corporation, which is the local office overseeing the zone.
Certified businesses within the zone are eligible to receive tax credits and benefits, according to the Empire State Development’s Web site. Businesses can be granted a 10-year tax exemption from state sales tax on the purchase of goods and services, and a declining tax credit for years 11 through 15.
“The Empire Zone Program was established to benefit certain areas of New York that face long-term unemployment and poverty,” Bloomberg said. “The program was designed to stimulate private investment, business development and job creation through a variety of tax and other financial incentives.”
Businesses also can receive a refundable tax credit on real property taxes, based on increased employment in the zone, according to the Web site. Additional benefits include wage tax credits for businesses bringing more jobs to the area, reduced utility rates and technical assistance with business questions.
The zone is centered around downtown Jamaica and the Jamaica Center, the newly opened retail complex, Samuels said, and the GJDC is hoping to use the incentives to draw more businesses to the area.
“The empire zone has many benefits to private businesses that come to the area,” Samuels said. “It makes the Jamaica Center and the zone more attractive to private sector businesses.”
York College and the regional headquarters of the Food and Drug Administration, which is housed on the campus, also are centers of the expanded zone, Samuels said.
“We’re hoping companies that are involved with the FDA will move into the area,” he said.
The expansion also reaffirms the rebirth of Jamaica as an economic center, Samuels said.
“This reflects the expansions that are going on in the Jamaica Center — the AirTrain development, the FDA. There is a growing interest in the private development of the area.”
Reach reporter Courtney Dentch by e-mail at TimesLedger@aol.com, or by phone at 229-0300, Ext. 138.
