IDA's Benefit the Total Community
Helping businesses invest in our region, growing jobs...
...that creates the income, that fuels the economy, that grows the community, that cares for the children, that live in the house that Jack built.
This is your Industrial Development Agency creating thousands of jobs and supporting billions of dollars in investments, Nurturing Business, Growing Community.
Read our "Frequently Asked Questions" below to learn more about how IDA's Nurture Business & Grow Community.
Do IDA's give grants?
An IDA does not directly provide grant funding. The IDA's main product is an Industrial Revenue Bond, which is a vehicle for providing tax incentives and serves as a conduit for bank or private financing. Many times when a project's investments are reported on, this generally is the amount of private investment being made by a company, not a grant given by the IDA.
Does IDA financing impact local requirements or zoning?
No. IDA financing approval does not override any local regulation. Before a project can proceed, all local zoning and other requirements must be met.
Do IDAs coordinate with other economic development agencies?
Yes, IDA's partner with many other agencies to match the client's needs with available programs. In fact, all IDA's in Erie County participate in a County-wide eligibility policy that denotes procedures for intergovernmental moves and the types of projects eligible for IDA assistance, regardless of location. In addition, IDA's will coordinate benefits with other agencies, such as Empire State Development, and utilities.
How do IDA's receive funding to operate?
IDA's do not receive any tax dollars from local taxing jurisdictions to operate. Businesses provided with IDA financing pay a fee that covers the IDA's costs of various regulatory filings, staff and activities such as marketing and studies.
Is it true that IDA-approved projects don't pay taxes?
No. When an IDA provides benefits to a project, the property immediately becomes exempt from mortgage tax, sales tax and real property tax. However, the IDA enters into a Payment In Lieu of Tax (PILOT) agreement with the project operator, which generates new taxes to the local community. IDA projects result in new tax revenues for the community utilizing a PILOT agreement that permits reduced tax payments over a period of time.
As an example, Amherst IDA-supported projects generated nearly $8 million in Town, County and School PILOTs in 2009. Additionally, properties whose PILOT agreements expired now pay over $6.6 million in property taxes to those jurisdictions.
Is it true that IDA's only create low paying jobs?
No. In fact, IDA's help businesses create all types of jobs like high paying R&D jobs, skilled manufacturing jobs and entry level back office jobs. A recent job survey completed by the ECIDA showed that IDA-assisted companies created jobs that, on average, paid above the regional average wage.
Click Here to see an example of how the Clarence IDA helped a local company.
To Learn More about IDA Services and to speak with an IDA Business Development Specialist Click Here.