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Tax Incentives

Frequently Asked Questions:

Q: What types of tax incentives are available?

A: Tax incentives are not grants or lump sums of money given to businesses from pools of taxpayer dollars. Rather, tax incentives function more like a "buy two, get one half off"  investment for businesses. A business qualifies for tax incentives, or exemptions, or reductions, only when they invest or spend other amounts in accordance with guidelines stipulated clearly in the ECIDA's Policies. These programs are called "Payment In Lieu of Taxes," or PILOT programs, which in simple terms requires a business to spend money in one area, in order to save money in another area. Other incentives can give a business a break on sales taxes for the purchase of construction materials, for example (again, still requiring the business to spend the money to purchase the materials), or a mortgage tax exemption in some cases.

The ECIDA has incentive programs that reduce taxes and improve the bottom line, reducing expansion costs up to 15% for eligible targeted companies.  The ECIDA's tax incentive program provides a major savings of the following; 1) real estate property taxes - savings through a PILOT (payment in lieu of taxes) provides savings on County, Municipal and School taxes based upon the value added by new construction or major renovation, 2) sales tax savings on the purchase of non production equipment and construction materials, and 3) a mortgage recording tax exemption of the 1% mortgage recording fee.


Q: Is my project eligible for a tax incentive?

A: Contact the ECIDA to determine if your project is eligible for incentives. Eligibility is based upon the "Countywide Industrial Development Agency Uniform Tax Exemption Policy" (UTEP).


Q: What size project makes sense for ECIDA tax incentives?

A: Projects should generally be over $500,000 to be economically feasible.


Q: What types of approvals are necessary?

A: Public notice, public hearing and ECIDA Board approval are required. Projects must comply with SEQRA requirements.


Q: Can I get an estimate of the tax savings I can expect on my project?

A: Use our Benefits Estimator to see how our incentives can help grow your business.


Q: What is the PILOT term?

A: Your project may qualify for a 7, 10 or 10 year enhanced PILOT. Contact the ECIDA with the specifics of your project to determine the PILOT term.


  7 year 10 year 10 year enhanced
Amounts  Generally over $500,000 to be economical  Generally over $500,000 to be economical  Generally over $500,000 to be economical 
Terms Available 
  • 7 year property tax abatement
  • sales tax abatement
  • One time mortgage recording tax exemption 
  • 10 year property tax abatement
  • sales tax abatement
  • One time mortgage recording tax exemption 
  • 10 year property tax abatement
  • sales tax abatement
  • One time mortgage recording tax exemption 
Term Basis

A project scoring system is used to determine the term of the incentive. The scoring system is based upon the following factors:

project location, cluster industry, economic impact, facility (LEED) certification and innovation in operations.

See Incentive Worksheet for details.

Benefit 
  • 7 year reduction on property tax, school tax, County tax and municipal tax (see PILOT schedule)
  • Exemption of 8.75% sales tax on non production equipment and construction materials
  • 1% exemption on amount of mortgage financed 
  • 10 year reduction on property tax, school tax, County tax and municipal tax (see PILOT schedule)
  • Exemption of 8.75% sales tax on non production equipment and construction materials
  • 1% exemption on amount of mortgage financed 
  • 10 year reduction on property tax, school tax, County tax and municipal tax (see PILOT schedule)
  • Exemption of 8.75% sales tax on non production equipment and construction materials
  • 1% exemption on amount of mortgage financed 
Required Approval  30 day Public Notice and Public Hearing, ECIDA Board Approval, SEQRA requirements  30 day Public Notice and Public Hearing, ECIDA Board Approval, SEQRA requirements  30 day Public Notice and Public Hearing, ECIDA Board Approval, SEQRA requirements 
Fees 
  • $1,000 application and publication fee
  • 1.25% agency fee amount of project amount
  • Counsel legal fees and disbursements 
  • $1,000 application and publication fee
  • 1.25% agency fee amount of project amount
  • Counsel legal fees and disbursements 
  • $1,000 application and publication fee
  • 1.25% agency fee amount of project amount
  • Counsel legal fees and disbursements 

Q: How do I apply?

A: Apply Here

© 2012 - Erie County Industrial Development Agency - All Rights Reserved 

95 Perry Street, Suite 403, Buffalo, NY 14203 | Phone: 716-856-6525 | Fax: 716-856-6754