Industrial Development Agency (IDA)

The Chenango County Industrial Development Agency (IDA) is a public benefit corporation of the State of New York, established to provide financial and other incentives to firms expanding or locating in Chenango County. IDA is an integral part of the comprehensive economic growth and organizational structure of Chenango County.

The Chenango County IDA will consider any and all project proposals allowed by law. In determining whether a project applicant qualifies to receive benefits an eligibility questionnaire must be completed for review.

The Chenango County Industrial Development Agency can offer the following economic development benefits as an inducement to companies to retail existing jobs and/or create new jobs within Chenango County

Payment in Lieu of Tax (PILOT)

Payment in lieu of tax (PILOT) is an agreement between the Agency and all affected taxing jurisdictions that contains a scheduled payment plan based on current tax rates and a mutually agreed project value. Ordinarily the exemption is for 10 years with a 95% exemption in the first year and decreasing by 10% in each succeeding nine years with the project being wholly taxable in the eleventh year.

Features:

Ten-year scheduled payment plan

First year abatement 95%

Ten year average net abatement of 50%

Tax Exempt Industrial Development Bond

The issuance and sale by the IDA of a tax exempt industrial development revenue bond (IRB), i.e. the interest payable to the lender on monies borrowed to finance project costs is exempt from the payment of federal and NYS income tax. This income tax savings to the lender enables the lender to offer an annual interest rate on the borrowed monies that is lower than the prevailing market rate.

Ordinarily, an IRB is issued only for the new construction of and equipping of manufacturing facilities. The use of an IRB for the purchase of existing facilities or the renovation of existing facilities or for non-manufacturing purposes is prohibited or limited.

The IDA is not a lender or source of capital. It is solely the responsibility of the project applicant to secure the required project financing, including the purchaser of an IRB, through a bank or other lawful lending source.

Features:

Real property tax abatement

State & local sales tax abatement

Mortgage recording tax exemption

Total issuance cost 1%

Sale Lease Back Transactions

In instances where the Chenango County Industrial Development Agency is not requested to play a role in the issuance of bonds, many of the above incentives can be accessed by eligible firms through the development of a simple sale/lease-back agreement between the project sponsor and the Chenango County IDA.

In a sale/leaseback transaction, title to the project is conveyed to the Agency. The Agency enters into a lease or sale agreement with the company for the project. The agency agrees to grant mortgages on and security interest in the project in favor of lenders on behalf of the company to secure the loans necessary to build or equip the facility.

Features:

IDA accepts nominal title to subject property

No practical minimum value

Real property tax abatement

State & local sales tax abatement

Mortgage recording tax exemption (if any)

IDA Fees = 1% of value of project cost

NYS Sales and Use Tax Exemption

Exemption from New York State sales and use taxes on the cost of construction materials, construction equipment rentals, non-manufacturing equipment and fixtures.

Mortgage Recording Tax Exemption

An exemption from the mortgage recording tax otherwise imposed by law at the rate of $7.50 per each $1,000 of monies borrowed for project costs, the repayment of which is secured by a real estate mortgage.

Incubator Facilities

The Chenango County IDA Earl B. Clark Industrial Park has acreage available for the construction of incubator facilities. These facilities offer IDA benefits such as: below market lease rates, sales tax exemption, and is located in the Greater Norwich Empire Zone.

For more information on Chenango County Economic Development Services, please contact us at 607-334-5532 or email jtavares@chenangony.org.