Economic Transformation and Facility Redevelopment Program Tax Credit: Beginning 2022

Tax Law section 35(d) requires the Tax Department to produce an Economic Transformation and Facility Redevelopment (ETFR) Program Credit Report by July 31 of each year. The program is designed to mitigate the economic consequences in certain communities where the following types of facilities closed:
• Correctional facilities operated by the Department of Corrections and Community Supervision (DCCS)
• Facilities operated by the Office of Children and Family Services (OCFS), and
• Psychiatric facility previously owned by New York State and operated under the Mental Hygiene Law located in the Metropolitan Commuter Transportation District (but outside of New York City)

The program is administered by Empire State Development (ESD) and offers a refundable tax credit with four components to redevelop closed facilities and attract new businesses to the surrounding areas. Taxpayers may claim credit for five consecutive years. The components of the credit are:
• ETFR Jobs Tax Credit Component
• ETFR Investment Tax Credit Component
• ETFR Job Training Tax Credit Component
• ETFR Real Property Tax Credit Component