Industrial Business Zone Relocation Credit

The Industrial Business Zone (IBZ) Relocation Tax Credit is a one-time tax credit. It gives $1,000 per moved worker to industrial and manufacturing firms. These firms must move to one of the City's 21 IBZs. Firms moving within an IBZ can also get this credit.

Businesses getting benefits from the Relocation Employment Assistance Program (REAP) cannot get IBZ Relocation Tax Credits.

Eligibility requirements:

• Only businesses that moved after July 1, 2005 are eligible.
• Businesses can buy or lease the new site, but it must be entirely within an IBZ.
• Businesses must have been operating for the past 24 months before moving.
• Businesses and their affiliates cannot own the old location.
• Businesses providing utilities and waste management services are not eligible.

Designated IBZs:

• Brooklyn: Brooklyn Navy Yard, East New York, Flatlands-Fairfield, Greenpoint-Williamsburg, North Brooklyn, Southwest Brooklyn
• Bronx: Bathgate, Eastchester, Hunts Point, Port Morris, Zerega
• Queens: Jamaica, JFK Industrial Corridor, Long Island City, Maspeth, Ridgeway/SoMA, Steinway, Woodside
• Staten Island: North Shore, Rossville, West Shore

The tax credit is applied to the business' City tax bill. It cannot be more than the actual moving costs or $100,000, whichever is less. There is no application for this program. Firms can claim the tax credit on their General Corporation Tax (GCT) or Unincorporated Business Tax (UBT) during the tax year of the move.

Forms for claiming the tax credit:

• GCT filers can find the IBZ tax credit in Form 9.6.
• UBT filers can find the IBZ tax credit in Form 114.6.

• Your business needs an Employer Identification Number (EIN). If you are a sole proprietor without an EIN, you can use your Social Security number (SSN).

• The SSN is only for Universal Business Tax (UBT) filers.

• Know the date your business moved into the Industrial Business Zone (IBZ).

• List where your business was for the 24 months before moving.

• Give the address of your business in the IBZ.

• Provide the start date of your lease at the new IBZ location.

• State how many full-time jobs (at least 30 hours per week) you moved to New York City.

  • Industrial employees: These employees make or assemble goods or process raw materials.

  • Commercial employees: These employees buy, sell or provide goods and services (not retail) directly to the end user.

• Report the basic rent paid or required to be paid to the landlord. Basic rent is the rent stated in a written lease, excluding extra costs like real estate taxes, maintenance or fuel adjustments.

• List the maintenance expenses paid to the landlord.

• Include costs for moving furniture, fixtures, equipment, machinery and supplies. This includes dismantling and reassembling equipment and preparing floors for reassembly. Only costs incurred within 90 days after moving to the new location are included. Do not include costs for structural or capital improvements or items bought in connection with the relocation.

• These activities also include processing, making or packaging goods.

• Industrial and manufacturing activities do not include waste management or utility services.

• Check for general information to understand eligibility requirements.

• Check the map of IBZs to see if your business location is eligible.

• Find out what information you need to submit a claim for credit on a tax return (General Corporation Tax or Unincorporated Business Tax).

• Attach and submit forms: Attach and submit the correct form with your business tax return:

  • Form NYC-114.6 for the Unincorporated Business Tax Return
  • Form NYC-9.6 for the General Corporation Tax Return