Form IT-606: Claim for QEZE Credit for Real Property Taxes (Tax Year 2025)

Form IT-606, Claim for QEZE Credit for Real Property Taxes, is issued by the New York State Department of Taxation and Finance for businesses that hold Qualified Empire Zone Enterprise (QEZE) status. This credit lets eligible companies recover a percentage of the real property taxes they paid on qualifying property located within a designated Empire Zone. For tax year 2025, the form remains a fillable PDF (AcroForm), meaning you can type your figures directly into the file before printing or attaching it to your return.

The QEZE program was created to encourage businesses to invest, hire, and stay operational in economically distressed areas of New York State. Real property taxes tend to be one of the heaviest recurring costs for a business, so this credit specifically targets that expense rather than income or payroll taxes. If your company already benefits from related Empire Zone incentives, you may also want to review Form IT-604, which covers the QEZE Tax Reduction Credit, since many businesses claim both credits in the same filing season.

Who Needs Form IT-606

You need this form if your business has been certified as a QEZE by Empire State Development and you own or lease real property within an Empire Zone on which you pay property taxes. The credit is generally available to corporations, partnerships, and sole proprietors that meet the employment test required to maintain QEZE certification. If your certification lapses because you fail to meet the employment number requirements for a given year, you won’t be eligible to claim the credit for that year, even if you paid property taxes.

Businesses that are new to the Empire Zone program sometimes confuse this credit with the EZ Investment Tax Credit. If you’re also claiming investment-related incentives, it’s worth comparing this form with Form IT-603, which addresses EZ Investment Tax Credit and EZ Employment Incentive Credit claims separately from the property tax benefit covered here.

When to Use This Form

Form IT-606 is filed along with your New York State income tax return for the year in which the real property taxes were paid or accrued, depending on your accounting method. For most filers working on the 2025 tax year, that means submitting the form with your 2025 return during the following filing season. The credit amount is based on a benefit period percentage that decreases over time as your business’s QEZE certification ages, so it’s worth checking your specific benefit period before assuming you qualify for the full percentage.

Partnerships and S corporations that generate this credit pass it through to partners and shareholders, who then report their allocated share on their own individual returns using the appropriate schedule. If you’re part of a pass-through entity, coordinate with your accountant to make sure the credit is divided and reported correctly across all owners.

How to Get and Fill Out Form IT-606

You can download the current fillable version directly from the New York State Department of Taxation and Finance website. Because the form uses AcroForm fields, you can complete it on a computer using Adobe Reader or a similar PDF program, which reduces errors and keeps your entries legible for state review.

Before filling out the form, gather your QEZE certification details, the property tax bills for the qualifying real property, and documentation showing your benefit period percentage. The form walks through each calculation step, starting with your eligible real property taxes and applying the applicable percentage based on your zone designation and years of certification. Double-check your Empire Zone designation number and the tax period dates, since mismatches between this form and your certification records are a common reason for processing delays.

Once completed, attach Form IT-606 to your New York State tax return rather than filing it separately. Keep copies of your property tax bills and QEZE certification letter in case the Department of Taxation and Finance requests supporting documentation during a review.