Article: N.Y. TIGHTENS EMPIRE ZONE TAX BREAKS; LOOPHOLES HAD ALLOWED BUSINESSES TO GET BREAKS, BUT CREATED FEW, IF ANY, JOBS.(News)

Byline: Marnie Eisenstadt Staff writer

The owners of businesses across the state that haven't been paying taxes because they took advantage of a loophole in the state's Empire Zone program will lose their tax breaks if they can't pass a new test.

The state Legislature and Gov. George Pataki agreed this week to several changes in the program, including a test for the scores of businesses that reincorporated solely to get Empire Zone tax breaks.

If businesses cannot prove they had no other reason to reincorporate, they'll have to give up their Empire Zone benefits. That determination will be made by the Department of Taxation and Finance.

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