Town of Colonie Industrial Development Agency
BUSINESS INCENTIVES
The Colonie IDA offers businesses access to financial tools for businesses to abate or exempt from certain tax liabilities. These tools enable the Colonie IDA to lower the costs of undertaking and financing a project in the Town of Colonie, Village of Colonie, or Village of Menands.
These include:
- Real property tax exemptions. IDA projects are exempt from property taxes and certain projects may be eligible to negotiate a payment-in-lieu-of-taxes (PILOT) to abate their property tax liability. The PILOT agreement typically preserves the existing tax liability and provides exemptions for the additional liability that may be incurred due to improvements to a site.
- The Grow Colonie program. This program provides a 7-year exemption period. The IDA provides a business with an exemption of 75% on its normal taxes (based on the assessed value of the land and existing improvements) and reduces at the end of the exemption period.
- The Enhanced Grow Colonie program. This program provides a 7-year exemption period. The IDA provides a business with an exemption of 90% on its normal taxes (based on the assessed value of the land and existing improvements) and reduces at the end of the exemption period.
- EXAMPLE: The Crossings Company plans to purchase a former light industrial site that has sat vacant for a number of years. Its assessed value recognizes its vacant condition and currently pays $10,000 in taxes in its current condition. After The Crossings Company purchases the site and rehabilitates it for a new light industrial use, its tax liability is estimated to be $100,000 – an increase of $90,000. The IDA approves a PILOT under the Enhanced Grow Colonie program for the project and as a result, The Crossings Company receives an abatement on the $90,000 increase for a seven-year period, beginning in Year 1, where the normal $10,000 is due plus 10% of the additional taxes due, for a total of $19,000. The Crossings Company saves $81,000 in taxes in Year 1. As the PILOT runs, by Year 8, the full normal taxes are due yearly thereafter.
- Sales and use tax exemptions. Projects undertaken by the Agency are exempt from sales and use tax of 4% in New York State and 4% in Albany County. The Town of Colonie does not collect a sales and use tax.
- EXAMPLE: Railroad Industries is planning to invest $20 million in the construction and fit-up of a new facility in the Town of Colonie. The project will have an economic impact of $100 million in the Town of Colonie over 10 years. Railroad Industries anticipates that $10 million of its investment will be subject to sales and use tax. The IDA approves a sales and use tax exemption for Railroad Industries which saves the company $400,000 in state sales and use taxes and $400,000 in county sales and use taxes.
- Mortgage recording tax exemptions. Projects undertaken by the Agency are exempt from mortgage recording taxes up to 1.0% of the mortgage amount. The mortgage tax in Albany County is 1.25% of the mortgage amount. It is broken down into separate taxes as follows:
- Basic Tax = 0.5%
- Special Additional Tax = 0.25%
- County Mortgage Tax = 0.25%
- CDTA Tax = 0.25% (not eligible for exemption)
- Tax-exempt and low-cost bonds. These bonds can finance to cover the cost of construction, rehabilitation, and equipping for a wide range of commercial and industrial projects.
Town of Colonie Local Development Corporation
BUSINESS INCENTIVES
The Town of Colonie Local Development Corporation (LDC) is a component of the Town’s comprehensive economic development program. The LDC is a not-for-profit public benefit corporation that supports Town of Colonie economic development through the creation of new business and employment opportunities and the retention and expansion of current commercial enterprises. The LDC also assists Colonie-based not-for-profit organizations with access to low-cost bonds for project financing.
This is achieved through the use of the LDC loan fund which encourages economic investment in existing and developing business enterprises and technologies and through LDC bonding authority. The purpose of the LDC is to benefit the residents of the Town of Colonie.
- Tax-exempt and low-cost bonds. These bonds can finance to cover the cost of construction, rehabilitation, and equipping for a wide range of commercial and industrial projects.
- Grants and loans. The LDC at times makes grants and loans available to support its overall mission.
Other Incentive Programs
New York State: https://esd.ny.gov/doing-business-ny/tax-based-incentives
- Excelsior Jobs Program
- START-UP NY
- Jobs Retention Program
- Life Sciences Tax Credit Program
- Employee Training Incentive Program
- Commercial Tax Credit Program
- New York State Film Tax Credit Program
- Empire State Musical and Theatrical Production Tax Credit Program
- Economic Transformation Program
- Brownfield Cleanup Program
- New Markets Tax Credits Program (eligibility limited to areas of West Albany)
National Grid: http://www.shovelready.com
- Industrial Building Redevelopment
- ShovelReady Infrastructure
- Brownfield Redevelopment
- Main Street/Commercial District Revitalization
- CleanTech Incubation
- Electric Capital Investment Incentive
- Natural Gas Capital Investment Incentive
- Three Phase Power Incentive
- Power Quality Enhancements Program
- Agribusiness Productivity
- Electric Manufacturing Productivity Program
- Natural Gas Manufacturing Productivity Program