Empowerment Zone Wage Tax Credit

The Empowerment Zone Wage Tax Credit helps businesses in special areas called Empowerment Zones. They were created to encourage business growth and economic development in low-income communities. New York City has two Empowerment Zones. One is in Upper Manhattan. The other is in the South Bronx.

How it works:

• Businesses can get a tax credit of up to $3,000 for each worker who lives in an Empowerment Zone.

• The credit is 20 percent of the first $15,000 the worker earns.

• To qualify, the worker must:

  • Work mostly in the Empowerment Zone and in your trade or business.
  • Live in the Empowerment Zone while working.

Check that your business and your workers’ addresses are in an Empowerment Zone.