Orleans Economic Development Agency: Incentives

Tax Incentives
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Real Property Tax Incentive, OEDA/IDA PILOT
Industrial facilities constructed and/or expanded with the use of Industrial Revenue Bonds or Sale/Lease Back Transactions through the OEDA/IDA are eligible for real property tax exemption. The Agency holds title to the project and a Payment-in-Lieu-of-Taxes (PILOT) is negotiated between OEDA/IDA and the company that abates a portion of the real property tax. Factors affecting the tax agreement include the term of the bond issue or loan, employment, investment, and economic impact of the project. In addition to the real property tax exemption, projects financed with OEDA/IDA will be exempt from sales taxes on construction materials and the mortgage tax.

New Market Tax Credit
The New Markets Tax Credit is a Federal Tax Credit of 39 percent for new investment that is available in three areas of the County. Areas include, the Village of Albion, the Village of Medina and the Town of Yates.

Buy Local Incentive
To augment its Real Property Tax Abatements, this enhanced incentive program has been developed by OEDA/IDA. The Buy Local Incentive seeks to link OEDA/IDA projects to other Orleans County-based businesses. An annual report filed with OEDA/IDA each year verifies the total amount of goods and services purchased. If a total of twenty percent (20%) of the total purchases for the reported year were from Orleans County-based businesses, the company will be eligible for further reductions in their PILOT payments.

New York State 485(b):
Commercial and industrial facilities constructed or reconstructed at a cost of more than $10,000 may be eligible for a partial exemption from the real property tax levied by counties, cities, towns, villages and/or school districts. The maximum exemption amounts to 50 percent (50%) of any increase in value in the first year following completion and declines by five percentage (5%) points in each of the succeeding nine (9) years. Application should be made with the local Assessor before the project is started. Eligibility for exemption under 485(b) expires if use of the facility for commercial or industrial purposes ceases.

Sales Tax Exemptions, OEDA/IDA
Projects financed with Industrial Revenue Bonds or under a sale/leaseback transaction with OEDA/IDA may be eligible for sales tax exemptions on construction materials, equipment rentals and/or equipment and fixtures purchased in conjunction with the project. Sales tax is 8.25%; on eligible project costs of $500,000, the company saves $41,250.

Mortgage Recording Tax Abatement, OEDA/IDA
Projects that include a collateral mortgage on property OEDA/IDA takes title to may be eligible for abatement of the mortgage recording tax. The tax is 1%; on a $3 million mortgage, the company saves $30,000.