IT-604: Claim for QEZE Tax Reduction Credit (2025)
New York · NY DTF · Used for tax years 2025
Form IT-604 is used to claim New York’s Qualified Empire Zone Enterprise (QEZE) tax reduction credit. It reports employment numbers, property and payroll amounts, income, and tax information used to calculate the credit available and the amount used for the current tax year.
Who files this form
Use Form IT-604 to claim the Qualified Empire Zone Enterprise (QEZE) tax reduction credit. Submit it with Form IT-201, IT-203, IT-204, or IT-205.
The form also covers claims by partners in partnerships, shareholders of New York S corporations, and beneficiaries of estates or trusts. Mark the box on page 1 if you are claiming in one of these roles.
Which section you complete depends on the QEZE's first certification date:
- Before April 1, 2005: Complete Section 1.
- On or after April 1, 2005: Complete Section 2.
What you'll need
Have the following ready:
- Copies of all certificates of eligibility and EZ retention certificates. The form requires you to submit these.
- The QEZE's name, employer identification number (EIN), empire zone name, and first certification date.
- Full-time employee counts for the current year, the applicable base period, and the test year. The employment tables use March 31, June 30, September 30, and December 31 counts.
- Property values, wages and other employee compensation, QEZE income allocated within New York State, and the tax and income amounts requested from your return.
- Names and EINs of related business entities.
- Beneficiary names, identifying numbers, and shares of QEZE income, if applicable.
For a QEZE first certified before August 1, 2002, if you claim it was formed for a valid business purpose, submit a notarized statement explaining in detail how it meets that test.
How to file
Submit Form IT-604 with Form IT-201, IT-203, IT-204, or IT-205.
- Complete the information above Section 1 on page 1, including the tax period.
- Complete either Section 1 or Section 2 based on the first certification date. Do not complete both.
- Submit copies of all certificates of eligibility and EZ retention certificates.
- Include all eight pages of Form IT-604 with your return, even though you complete only one section.
Common mistakes
- Leaving out pages: You must submit all eight pages with your return.
- Completing both sections: Complete only the section that applies to the QEZE's first certification date.
- Rounding employment numbers: Do not round employment numbers where the form says not to.
- Omitting employees in other empire zones: The all-EZ employment calculation includes employees within all EZs, even zones where you are not certified.
- Continuing after a failed employment test: If you answer No on line 3 or 6 in Section 1, or line 36 or 39 in Section 2, the form says to stop because you are not eligible for the credit.
Questions people ask
Do I need to submit pages from the section I did not complete?
Yes. The form requires all pages, 1 through 8, with your return.
How long is the employment base period?
Section 1 uses a five-year base period. Section 2 uses a four-year base period.
Does employment have to increase to pass the employment tests?
In Section 1, current-year employment must equal or exceed base-period employment for both the all-EZ test and the New York State employment test outside all EZs. In Section 2, current-year employment must exceed base-period employment for both the all-EZ test and the statewide test.
How is the credit calculated?
The form multiplies the benefit period factor, employment increase factor, zone allocation factor, and tax factor. This calculation appears on line 29 in Section 1 and line 62 in Section 2.