Form IT-605: Claim for EZ Investment Tax Credit and EZ Employment Incentive Credit for the Financial Services Industry (Tax Year 2025)

Form IT-605 is a New York State tax credit form designed specifically for businesses in the financial services industry that operate within an Empire Zone (EZ). It allows eligible companies to claim two related benefits in a single filing: the EZ Investment Tax Credit and the EZ Employment Incentive Credit. The New York State Department of Taxation and Finance issues this form separately from the general version because financial services businesses face different eligibility rules and calculation methods than manufacturers, retailers, or other industries operating in the same zones.

If your company falls under the broad definition of a financial services business — think banks, brokerage firms, insurance companies, or similar financial institutions — and you’ve made qualifying investments in property or equipment located in a designated Empire Zone, this form is likely the one you need rather than the standard Form IT-603, which covers the same credits for non-financial businesses.

Who Needs to File Form IT-605

This form applies to corporations, partnerships, and sole proprietors classified as financial services firms that have invested in qualified property placed in service within an Empire Zone. To qualify, the business typically needs to meet employment thresholds and demonstrate that the investment supports job creation or retention in the zone. The EZ Employment Incentive Credit portion specifically rewards businesses that maintain or grow their workforce within the designated area over a period of years, building on credits previously claimed.

Financial services companies that already claimed the EZ Investment Tax Credit in a prior year and continued to meet employment requirements may use this form to claim the additional employment incentive piece, even if they aren’t making new investments in the current tax year. This makes IT-605 relevant not just for new filers but also for companies tracking multi-year credit eligibility tied to earlier investments.

When This Form Is Used

Form IT-605 is filed alongside your New York State income tax return for the applicable tax year — in this case, Tax Year 2025. It’s not a standalone submission; it works as a supporting schedule that calculates the credit amount you’ll then apply to your overall tax liability. Businesses generally file it when they have new qualifying investment activity, when they’re claiming the employment incentive credit tied to investments from previous years, or both in the same filing.

Because Empire Zone benefits phase out or change based on zone designation dates and business certification status, it’s worth confirming your zone’s current status with the Department of Taxation and Finance before assuming eligibility. Some zones have expired or been decertified, which affects whether new investment credits can still be claimed, even though employment incentive credits tied to older investments may continue.

How to Get and Complete the Form

Form IT-605 is available as a fillable PDF directly from the New York State Department of Taxation and Finance website. Since it includes AcroForm fields, you can type your information directly into the PDF using standard software like Adobe Acrobat Reader before printing or submitting it electronically with your return.

When completing the form, you’ll need documentation supporting your investment amounts, dates property was placed in service, and employment figures for the relevant zone. The calculations require you to reference prior-year credit claims if you’re carrying forward the employment incentive portion, so keeping organized records from previous filings makes this process considerably smoother.

Businesses working through Empire Zone credits often deal with more than one related form in the same filing season. If your company also qualifies for property tax relief under the zone program, you might need to review Form IT-606 for the QEZE real property tax credit, or check Form IT-604 if your business qualifies for the QEZE tax reduction credit as well. These programs frequently overlap for businesses operating in Empire Zones, so reviewing all applicable credits before filing helps avoid leaving money unclaimed.

As with most New York State tax credit forms, accuracy in reporting investment dates, dollar amounts, and employment data matters significantly, since the Department of Taxation and Finance may request supporting documentation during review. Filing electronically with your completed return through approved tax software or a licensed preparer is generally the most efficient path for financial services businesses juggling multiple Empire Zone credits in the same tax year.