Incentives to drive community growth
We can provide aggressive tax exemptions and bonds to attract businesses and non-profits to Orange County, or to help them expand here.
Jobs created and retained in Orange County through OCIDA incentives
Companies we have partnered with
Savings on eligible Sales & Use Taxes for your project
Sales & Use Tax Exemptions
Purchases made by the IDA or its agents are exempt from the 8.125% State and County Sales and Use Tax.
If approved by the IDA, a company is designated the agent of the IDA and is issued a Sales Tax Exemption (STE) letter that allows the company to acquire materials, equipment and services needed to construct or equip the project without having to pay the sales tax.
The STE letter is limited in its duration, applies solely to the approved project and provides a description of the project to the vendors while informing them that the company is acting as an agent of the IDA.
Mortgage Recording Tax Exemption
In New York State, Mortgage Recording Tax is 1.05% of the amount of the mortgage.
For an approved project, the IDA may exempt the project from paying the State and Municipality reducing Mortgage Recording Tax to .3%.
Savings on Mortgage Recording Taxes
Aggressive PILOT lengths for qualifying projects
Real Estate Tax Abatements
OCIDA has an aggressive Uniform Tax Exemption Policy (UTEP) that far exceeds the tax benefits of the standard New York State 485-b exemption, thus making Orange County a strong competitor in attracting business development and fueling growth.
For a qualified and approved project, the IDA takes title or a leasehold interest in the property thereby technically making the property exempt from all real property taxes.
With a Payment in Lieu of Taxes (PILOT) Agreement through OCIDA, the company pays the current real property taxes, including all special district taxes, to the County, Town/Village and School District in which it is located, and a graduated percentage of taxes upon the improvements constructed on the property.
Special financing for eligible manufacturing and public-facing projects
Tax-Exempt Revenue Bonds
Through the issuance of tax-exempt industrial revenue bonds and tax-exempt civic facility bonds, the IDA may offer conduit financing for manufacturing projects.
These instruments can assist in the purchase of land, new machinery & equipment, the construction of new facilities or the renovation of existing facilities.
It is important to note that, although the IDA is the conduit for the issuance of a bond on behalf of an applicant, the applicant is ultimately responsible for securing a buyer or broker for the bond issue.
The decision to extend benefits – tax relief and other incentives – rests solely within the discretion of the IDA Board of Directors. The IDA Board will consider the
business opportunities generated by the project, the proposed number of both temporary and permanent jobs to be created, the anticipated wage scales, the
scope of the company’s capital investment in the project and the opportunities for the local force.
View Frequently Asked Questions about OCIDA Incentives
