The IDA offers a wide range of benefits to eligible companies that show a compelling need for assistance in maintaining or creating jobs. The benefits include taxable bonds for construction financing; sales tax exemptions on construction material, furniture, equipment and fixtures; exemption from payment of mortgage recording tax; and Payment-in-Lieu of Taxes (PILOT) agreements on property. The benefits are guided by New York State law and require that the company and IDA enter into formal legal agreements so that the benefits can be rendered and the outcomes anticipated by the company will be realized. The assistance is not available for purchase of “rolling stock.”
See our Small Business Fact Sheet.
Following are a few examples of recent IDA projects.
- A company needs to expand its leased space from 20,000 to 50,000 square feet and increase jobs. The firm is looking for new space in both Westchester and Connecticut. The IDA can offer this firm sales tax abatement through a straight-lease mechanism on the build-out of office space and the purchase of office equipment, furniture, fixtures and special equipment such as a new server system. If the firm is purchasing a building it may be eligible for mortgage recording tax abatement. Working with the Office of Economic Development, additional benefits for decreased utility costs, workforce training and transit assistance for employees may also be available.
- An international corporation will relocate 700 employees to new back office space. It has found vacant buildings in both Westchester and northern New Jersey. To attract this company to Westchester, the IDA can offer incentives to make the purchase of a Westchester site competitive with a New Jersey site. As this is a purchase of a building, the IDA can offer mortgage tax abatement on the purchase itself as well as sales tax exemptions on the rehabilitation of the building and purchase of fixtures, furniture and equipment. If the company and the municipality agree on a beneficial tax schedule, a PILOT can be executed. Working with the Office of Economic Development, additional benefits for decreased utility costs, workforce training and transit assistance for employees may also be available.
- A manufacturer wants to expand its core manufacturing business. The IDA can either help the manufacturer with sales tax abatement or by issuing tax-exempt bonds. This type of tax-exempt debt is guided by I.R.S. regulations. If purchase of a building or rehabilitation is involved, the firm may be eligible for mortgage recording tax abatement or a PILOT. Working with the Office of Economic Development, additional benefits for decreased utility costs, workforce training and transit assistance for employees may also be available. (The Agency can help smaller manufacturers looking to finance from $750,000 to $10 million by setting up a manufacturer's composite bond pool.)
- A for-profit entity interested in developing affordable housing is also eligible for IDA tax-exempt bonds. The IDA can issue private activity bonds to allow for-profit entities to build affordable units and utilize other federal housing tax credits.