Form IT-604I: Instructions for Form IT-604 Claim for QEZE Tax Reduction Credit (Tax Year 2025)

Form IT-604I contains the official instructions for New York State’s Form IT-604, Claim for QEZE Tax Reduction Credit. This credit is available to businesses certified as Qualified Empire Zone Enterprises (QEZEs) that operate inside one of New York’s designated Empire Zones. If your company holds QEZE certification and has been paying tax under Article 9-A, Article 22, or one of the other applicable tax articles, this is the form that lets you calculate and claim the reduction on your state tax liability tied to zone activity.

The New York State Department of Taxation and Finance issues this form every tax year because the credit rate and benefit period depend on when your business was certified and how many years have passed since certification. The QEZE Tax Reduction Credit isn’t a flat number — it’s calculated as a percentage of your tax liability attributable to the zone, and that percentage shrinks over a set schedule as your benefit period progresses. The instructions walk through exactly how to determine which “benefit period year” you’re in and what percentage applies.

Who needs to file Form IT-604

You need this form if your business is a certified QEZE and you want to reduce your New York tax liability based on your zone-based operations. This applies to corporations filing under Article 9-A, individuals, partnerships, and other entities filing under Article 22, as well as certain insurance corporations and utility companies subject to their own tax articles. If you’re not QEZE-certified, or your zone benefit period has already expired, this credit doesn’t apply to you.

It’s common for businesses that already use zone-based incentives to also work with related credits. If your enterprise is also claiming zone investment or employment incentives, you’ll likely want to review Form IT-603I, which covers the EZ Investment Tax Credit and EZ Employment Incentive Credit — a separate but related benefit for businesses operating in Empire Zones.

When to use this form

Form IT-604 is filed along with your annual New York State tax return for the year in which you’re claiming the credit. Because the credit percentage decreases the further you get from your original certification date, you’ll need to file it every year you remain eligible until your benefit period runs out. The instructions include worksheets to help you track your current benefit year and apply the correct reduction percentage — skipping a year or miscalculating the percentage is one of the most common mistakes businesses make with this credit.

How to get and complete Form IT-604I

Form IT-604I is a paper-only document. There’s no fillable PDF version, so you’ll need to download it from the Department of Taxation and Finance’s website, print it out, and complete it by hand using the official Form IT-604 that accompanies it. Because the calculations involve multiple steps — determining your benefit period, applying the correct percentage, and allocating the credit across different tax components — it helps to read through the entire instruction sheet before you start filling anything in.

Have your QEZE certification documents on hand, along with your prior-year tax filings, since you’ll need to reference your original certification date and any previously claimed credit amounts. Double-check your business’s Empire Zone designation hasn’t changed and that your certification is still active for the tax year in question, since an expired or revoked certification will disqualify you from claiming the credit at all.

Businesses juggling several New York State credits often find it useful to compare instructions across forms to avoid duplicating claims or missing a filing step. If you’re also dealing with personal income tax credits unrelated to zone certification, it may be worth checking Form IT-270I, which covers the New York City Income Tax Elimination Credit, to see whether it applies to your household or business owners separately from the QEZE benefit.

Once completed, Form IT-604 gets submitted with your regular state tax return — it isn’t filed as a standalone document. Keep a copy of both the form and your supporting certification paperwork in your records, since the Department may request documentation to verify your benefit period calculations in future years.