Property Tax Abatement

A PILOT, or “Payment in Lieu of Tax” is an important financial incentive available to companies investing in facilities in Jefferson County, that can significantly reduce and stabilize the company’s local property tax liability over a set period of time.

In Jefferson County, depending on the type of project, a process of negotiation with the affected local taxing jurisdictions takes place prior to implementation. These discussions consider the number of jobs to be created or retained, the economic impact of those jobs, the economic impact of the company’s increased business activity, and the size and nature of the capital investment itself. The terms of the PILOT agreement are also negotiated. Issues such as the assessed value of the investment, the length of the agreement and its exemption terms are also negotiated at this time.

Download the Uniform Tax Exempt Policy

The table below illustrates the JCIDA’s typical PILOT schedules.

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Sales Tax Abatement

JCJDC takes title to the property for period of construction and passes tax exempt status to the project so expanding or new facilities may avoid sales tax on construction-related purchases.

Property reverts back to company after construction. (click here to download application)

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Mortgage Recording Tax Abatement

JCIDA passes its tax exempt status to any business with facility expansion construction projects. The exemption is .75% (click here to download application)

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New York State Tax Credits

JCIDA staff can help your company in pursuing four fully refundable tax credits through New York State’s Excelsior Jobs Program. Eligible businesses claim these credits over a 10-year period. These include:

  • Jobs tax credits of 6.85% of wages per new job
  • Investment tax credit valued at 2% of qualified investments
  • Research & Development tax credit of 50% of the Federal R&D credit up to 3% of research expenditures in NYS
  • Real Property tax credit for regionally significant projects in targeted industries.

To earn any of the following credits, firms must first meet and maintain established job and investment thresholds. For more information on the Execlsior Jobs Program visit http://www.esd.ny.gov/BusinessPrograms/Data/Excelsior/101411_ExcelsiorJobsProgramOverview.pdf

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