N.Y. Comp. Codes R. & Regs. tit. 5 § 16.4

Current through Register Vol. 46, No. 45, November 2, 2024

Section 16.4 - Criteria of eligibility

(a) In order for a qualified direct equity investment to be certified by the commissioner to be eligible for economic development zone capital tax credits, it must be demonstrated that:

(1) the investment in a certified zone business will contribute, significantly, to an activity having tangible economic benefits, such as start-up, expansion or industrial modernization of the certified zone business;

(2) the certified zone business has the potential to create jobs; and

(3) the direct equity investment is necessary to increase the amount of capital available to the certified zone business, provided, however, that such investment is not intended nor will be used to refinance existing debt or replace existing equity in such zone business.

(b) In order for a qualified contribution to a community development project to be certified for the purpose of becoming eligible for empire zone capital tax credits, it must be demonstrated that it will advance the zone development plan designed to promote the development of new business and the expansion of existing business within the zone where the contribution is proposed.

N.Y. Comp. Codes R. & Regs. Tit. 5 § 16.4