What Kind of Benefits Can My Business Get?
What IDA benefits are available?
The IDA offers a wide range of benefits to eligible companies and
organizations 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.”
Click here to 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 not-for-profit institution needs to refinance
and consolidate existing debt, rehabilitate and expand facilities,
and purchase a new computer system.
The IDA can assist this organization
through the issuance of tax-exempt civic facility revenue bonds. Usage
of long-term bond issuance will allow for a greater term of the debt
and provide interest rates below those offered through the commercial
lending markets. Exact rates would be agreed upon by the terms worked
out with the underwriter. In addition the bond financing would be
exempt from mortgage recording tax. Some not-for profits' borrowing
cannot exceed $20,000,000 in one issuance under New York State Law.
(The Agency can also issue bonds for not-for-profit agencies or assist
a number of organizations collectively that are borrowing as little
as $750,000 each through its not-for-profit 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.
Westchester County Industrial Development Agency
Room 903, Michaelian Office Building
148 Martine Avenue
White Plains, NY 10601
Phone:914.995.2916, Fax: 914.995.3044, E-mail mgg8@westchestergov.com
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