New York – QEZE Sales Tax Credit or Refund Eligibility

SALT Report 2115 – The New York Department of Taxation issued a new sales tax bulletin regarding QEZE Sales Tax Credit or Refund eligibility.  Although the Empire Zones Program expired on June 30, 2010, business that are a Qualified Empire Zone Enterprise (QEZE) and are located in an area that was formerly designated an Empire Zone may still be eligible to apply for a credit or refund of the sales tax paid on certain property and services.

Eligibility depends on:

  • The date you were certified as an Empire Zone business by the Empire State Development,
  • Whether you are required to be certified by the Tax Department as a QEZE, and
  • The types of items and services that were bought or used

All taxpayers must have a Certificate of Eligibility and an Empire Zone Retention Certificate from the ESD in order to apply for a credit or refund of sales tax.

How to Claim a Credit or Refund

Taxpayers should use Form AU-12, Application for Credit or Refund of Sales or Use Tax – Qualified Empire Zone Enterprise, to apply for a credit or refund. This form may only be filed one time during each tax quarter.

If you are registered with the Department for sales tax purposes, you can claim a credit when you file your sales tax return using Schedule W, Report of Purchases Eligible for Credit by a Qualified Empire Zone Enterprise.  However, if you are claiming a credit on Schedule W, you must also file Form AU-12.

If you are applying for a sales tax refund for purchases of motor fuel or diesel motor fuel you should use Form FT-500, Application for Refund of Sales Tax Paid on Petroleum Products.

Eligibility Period

If you were certified prior to April 1, 2009, and you qualify as a QEZE your eligibility period is 120 months from the effective date on Form DTF-81. If you were certified by ESD after April 1, 2009, your eligibility period is 120 months from the first day of the month after the effective date on your Certificate of Eligibility.

For Further Information

New York Department of Taxation and Finance – Technical Bulletin TB-ST-730