Tax Abatements, Exemptions & Credits
County of Monroe Industrial Development Agency
In 1969, legislation was enacted providing for the creation of Industrial Development Agencies (IDAs) to facilitate economic development in each of the State’s counties, as well as a number of cities, towns and villages, and delineating their powers and status as public benefit corporations. Brockport is located in the western portion of Monroe County and is served by the County of Monroe Industrial Development Agency, or COMIDA.
IDAs generally attempt to attract, retain and expand businesses within their jurisdictions through the provision of financial incentives to private entities. This often includes the use of real property, sales and mortgage recording tax exemptions. The Greater Brockport Development Corp. will work with COMIDA to access all of the financial incentives for which your project qualifies.
Sales and Use Tax Exemption
Companies pay no sales or use tax on construction or equipment purchases that occur during the construction phase of a new project or expansion. Through this program, companies save 8% (current sales tax rate) on all qualifying purchases.
Real Property Tax Abatement
Companies utilize a “PILOT” (Payment In Lieu Of Taxes) program to make payments to the IDA, potentially saving millions of dollars.
Mortgage Recording Tax Exemption
Companies can receive a full exemption from mortgage recording tax for any mortgage recorded in connection with a project. Through this program, companies save 1.00% (current mortgage recording tax rate) on qualifying mortgages.
Tax Exempt Financing
The County of Monroe IDA can issue both tax-exempt and taxable bonds, making the bond proceeds available to an eligible company. Financing through bonds can save companies a significant amount of their financing costs.
To learn more about the County of Monroe Industrial Development Agency and its financial incentive programs for business, visit: http://www.growmonroe.org/.
Village of Brockport
Real Property Tax Exemption
To encourage the conversion of non-residential real property to mixed-use property in order to expand and promote downtown residential uses, improve the quality of such property, and to preserve and expand the tax base of the Village of Brockport, a partial exemption from taxation and special ad valorem levies is available within the village limits.
State of New York Tax Credit Programs
In addition to the various tax credits, exemptions and abatements available through COMIDA, New York State also provides numerous Tax Credit programs:
Work Opportunity Tax Credit
The Work Opportunity Tax Credit (WOTC) offers employers up to $2,400 in federal tax savings for hiring people with barriers to employment. To qualify, those employees must complete:
▶ At least 120 hours of work for the partial WOTC credit of $1,500
▶ More than 400 hours for the full $2,400 credit
Disabled Veterans Credit
The Disabled Veterans Credit (must have a service-related disability of at least 10%) applies to people who are either: offers employers up to $2,400 in federal tax savings for hiring people with barriers to employment. To qualify, those employees must complete:
▶ Recently discharged from active duty (within one year), or
▶ Unemployed for six of the last 12 months.
This credit has totals up to $4,800. The new credit is 40 percent of the first $12,000 in first-year wages for those employed 400 or more hours. You can get a partial credit (25% of the first $12,000 in wages) for employees who work between 120 and 399 hours.
Long-Term Family Assistance Work Opportunity Tax Credit
The Long-Term Family Assistance Work Opportunity Tax Credit is a two-year credit. It offers incentives of up to $9,000 in federal tax credits to employers who help a long-term public assistance recipient take and keep a job. To qualify, the person must work:
▶ At least 120 hours to for a partial WOTC-LTFA credit of $2,500, or
▶ Over 400 hours for the full credit.
In both cases, you can hire them for part-time work, making this a very flexible workforce tool.
Workers with Disabilities Employment Tax Credit
Businesses that employ people who obtain or have received vocational rehabilitation services within two years of hire may earn $2,100 more in state tax credits. You get the credit during the second year of employment and can combine it with the WOTC.
To learn more about these various tax credits available through the New York State Department of Labor, call (800) HIRE-992 or click HERE.