Incentives

SALES TAX EXEMPTION

The combined New York State and Erie County sales tax is eight and three quarters percent (8.75%) on the price of goods and services subject to such tax. Approved projects assisted through the Amherst IDA are exempt from payment of sales tax. Thus, construction materials, equipment and fixtures purchased through the agency in connection with an approved project will not be subject to state and county sales tax.

MORTGAGE RECORDING TAX EXEMPTION

The New York State Mortgage Recording Tax for commercial property is one percent of the principal amount of the bond/mortgage). Approved projects assisted through the Amherst IDA are exempt from ¾ of the payment of the mortgage recording tax.

PROPERTY TAX ABATEMENT

In New York State, real property owners are generally subject to a real property tax that is based upon the assessed valuation of such real property and the improvements thereon. Because an industrial development agency (IDA) is a public benefit corporation, it is exempt from payment of real property taxes levied upon any real property to which it holds title (GML §874 and RPTL §412-a). However, such IDA-owned property remains subject to special district taxes.

The Countywide IDA PILOT policy classifies projects by use and occupancy. The PILOT policy for each classification requires payments to be made in accordance with a graduated scale, representing tax payment of increasing percentages that would have been due without abatement, based on the assessed value added to the project by new construction or renovation. Since payments are based upon the assessed value of the project, there is no need for real property appraisals to be performed as a part of an application for tax exemption.

If a project has additional funding needs, the AIDA works with its partners to provide additional incentives such as loans, workforce training funding, and other grant/tax incentives from a variety of State and Local sources.  A list of our economic development partners can be accessed here.