The Orange County Industrial Development Agency provides financial incentives in connection with the acquisition, construction and equipping of qualified projects.
The incentives include:
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.
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%.
Our tax policies can help save money and build jobs.
The Orange County Industrial Development Agency has an aggressive Uniform Tax Exemption Policy 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 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. However, the IDA requires the execution of a Payment in Lieu of Taxes (PILOT) Agreement with the company which requires the company to pay the current real property taxes, including land and 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.
The Orange County Industrial Development Agency has adopted a Uniform Tax Exemption Policy (UTEP) program targeted to business and industries that will provide meaningful jobs.
For the most recent version of the PILOT Schedules and UTEP, please see the documents page.
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.