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

Form IT-605-I contains the instructions for New York State’s IT-605, the form financial services businesses use to claim the Empire Zone (EZ) Investment Tax Credit and the related EZ Employment Incentive Credit. These credits were created to reward companies in the financial services industry that invest in qualified property within a designated Empire Zone and, in some cases, also increase their workforce as a result of that investment. If your firm still holds certification under New York’s older Empire Zone program and made qualifying investments, this is the guidance sheet you’ll want next to the actual claim form.

It’s worth noting upfront that the Empire Zone program has been phased out for new participants for years, but businesses with existing certifications and carryforward credits can still file claims tied to eligible property placed in service or investments made under the program’s rules. That’s exactly the situation IT-605-I addresses: it walks certified financial services businesses through calculating the investment credit, determining whether they also qualify for the employment incentive add-on, and reporting everything correctly on the corresponding tax return.

Who Needs This Form

IT-605-I is meant for businesses in the financial services sector, think banking, lending, securities, and similar regulated activities, that hold or held Empire Zone certification and made investments in qualified property located within a zone. Not every business type qualifies for the EZ Investment Tax Credit under the financial services provisions; the instructions spell out the specific eligibility criteria, including what counts as qualified property and how the zone certification requirement applies to this particular industry.

Corporations, partnerships, and individual filers who are eligible to claim this credit will use the instructions alongside Form IT-605 itself. If your business also increased employment as a direct result of the qualifying investment, the instructions explain how to calculate the additional EZ Employment Incentive Credit, which is designed to reward job creation tied to the investment rather than standing alone.

When You’d Use It

You’d turn to this form during tax season for tax year 2025 if you’re claiming either credit on your New York State return. Because these are Empire Zone credits, timing matters, you need to confirm your certification status and the placed-in-service dates for the property in question line up with program requirements. The instructions clarify how carryforward provisions work if you can’t use the full credit in the year it’s earned, which is common for larger investments that generate credit amounts exceeding your current tax liability.

Financial services businesses juggling multiple New York credit programs may find it useful to compare this credit against others available for property and investment activity. For example, some businesses also review Form IT-612-I, which covers the Remediated Brownfield Credit for Real Property Taxes, since both involve property-related tax benefits under different state incentive programs. Similarly, businesses previously certified under Empire Zone rules often need to check Form IT-606-I for the QEZE Credit for Real Property Taxes, another program tied to the same zone certification history.

How to Get and Complete the Form

Form IT-605-I is a PDF published directly by the New York State Department of Taxation and Finance, and it does not have digitally fillable fields. That means you’ll need to download and print the document, then complete it by hand using the line-by-line guidance provided. The instructions walk through each section of Form IT-605, explaining how to calculate the investment credit base, apply the applicable percentage, and factor in any employment incentive amounts if your business meets the job-creation thresholds.

Before filling anything out, gather your zone certification documents, records of qualifying property purchases or improvements, and employment figures if you’re claiming the incentive portion. Having these on hand makes it much easier to follow the calculations without having to stop and track down paperwork mid-form. Once completed by hand, the form gets attached to your relevant New York State tax return for the 2025 filing year.

Businesses working through multiple state tax credits sometimes also reference Form IT-636-I for the Alcoholic Beverage Production Credit, not because it applies to financial services directly, but because reviewing how different New York credit instructions are structured can help clarify formatting and documentation expectations across the board.