Data & Collection
EZ Certification is verification that the address provided by the taxpayer is in the EZ. Data used in OEDIT’s EZ reports comes from certification forms that must get “certified” as being in the EZ before they can be claimed with the Department of Revenue. This data has not been claimed by the taxpayer from Dept. of Revenue yet (and may never be claimed); has not been verified, audited or accepted by Dept. of Revenue yet; and does not represent numbers that have an impact on state income tax revenue. Only tax credits that are claimed impact state tax revenue.
Historically, only about 40-60 percent of what was certified was claimed by taxpayers on their state income taxes. Tax credit data from the Dept. of Revenue’s annual report represents amounts that were actually claimed by taxpayers and reduced the income taxes paid by taxpayers in exchange for locating in an EZ.
The intent of this program is to encourage a business to locate and expand in a distressed geography. Each EZ incentive is tied to a specific activity; the tax credit is earned after the business performs the activity including: specified investments, job training and creating new jobs. These activities benefit the local economy with additional activity and tax revenues.
Return on Investment
Each EZ tax credit is tied to a certain desired activity that has to be performed before the tax credit is earned. Each EZ business tax credit has an ROI built into the requirements to earn the tax credit. In addition, activity associated with EZ business tax credits generates tax revenue.
EZ Annual Reports & Resources