Form IT-601: Claim for EZ Wage Tax Credit and ZEA Wage Tax Credit (Tax Year 2025)

Form IT-601 is used by New York State businesses and individuals to claim the Empire Zone (EZ) Wage Tax Credit, along with the related Zone Equivalent Area (ZEA) Wage Tax Credit. Both credits reward employers who hire and retain workers within designated economic development zones across the state. If your business operates inside one of these zones and meets the employment criteria, this form is how you calculate and claim the credit against your New York State tax liability.

The New York State Department of Taxation and Finance issues this form each tax year, and the version for 2025 reflects current wage thresholds, zone designations, and credit computation rules. Because Empire Zone and ZEA programs have specific eligibility windows tied to certification dates, it’s worth confirming your business’s zone status before filling out the form, since not every location that was once part of an Empire Zone still qualifies today.

Who Needs Form IT-601

This form applies to businesses — corporations, partnerships, and sole proprietors — that employ workers in a certified Empire Zone or a designated Zone Equivalent Area. To qualify, the business generally must show an increase in employment compared to a base year, and the credit amount is tied to wages paid to net new employees. Farm employers, manufacturers, and service businesses located within these zones commonly use this credit, though eligibility depends on the specific zone certification the business holds.

Individuals who are partners, shareholders, or members of an eligible pass-through entity may also need this form to claim their share of the credit on their personal New York State return. In that case, the entity computes the total credit and each owner reports their allocated portion using the figures provided by the business.

When Form IT-601 Is Used

You file Form IT-601 along with your New York State tax return for the year in which you’re claiming the wage credit — in this case, tax year 2025. The form walks through the calculation of qualifying wages, the applicable credit percentage based on employee category (including targeted groups that carry higher credit rates), and any prior-year carryover amounts if the credit exceeded your tax liability in an earlier year.

Businesses that recently expanded their workforce within a zone, or that are still working through a multi-year certification period, typically need to file this form annually as long as they continue meeting the wage and employment requirements. It’s not a one-time filing — the credit is recalculated each year based on current payroll data.

How to Get and Complete the Form

Form IT-601 is available as a fillable PDF directly from the New York State Department of Taxation and Finance. Because it’s an AcroForm, you can type your figures directly into the document using standard PDF software before printing or attaching it to your e-filed return. This makes it easier to double-check calculations and avoid the illegibility issues that come with handwritten forms.

When completing the form, gather your zone certification number, payroll records showing wages paid to qualifying employees, and any documentation supporting employee counts from your base year. The instructions accompanying the form break down the credit rate schedule by employee type, so it helps to have that reference handy while filling out each section.

Businesses that also depreciate qualified property under IRC Section 168(k) should be aware that similar zone-based tax benefits sometimes intersect with depreciation schedules — see the overview of Form IT-398 for how New York treats that property separately from federal rules. And if the credit involves a jointly filed return where one spouse wasn’t aware of certain business tax positions, it’s worth reviewing Form IT-285 for innocent spouse relief options. Businesses dealing with pending audits on related entity structures, such as LPs or LLPs, might also find the audit deposit process described in FTB Form 3579 relevant for comparison, even though that’s a California form.

Once completed, Form IT-601 gets submitted along with your relevant New York State income or corporate tax return, not filed separately. Keep copies of your payroll documentation and zone certification paperwork on hand in case the Department of Taxation and Finance requests substantiation of the wage credit claimed.