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|
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.
|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|
Q: How do I apply?
A: Apply Here