BCIDA Incentive Programs

Tax Exempt Industrial Development Bonds

Manufacturing related expansion projects that anticipate fixed asset financing in excess of $1 million can expect substantial advantages through the use of tax-exempt industrial development bonds. (Interest from bonds is exempt from federal and state income tax).

Features:
- Real Estate/equipment loans - 80% of prime
- 15-20 yr. term on real estate
- Practical minimum of $1.5 MM
- Real property tax abatement
- State & local sales tax abatement
- Mortgage recording tax exemption
- Some restrictions on use
- Total issuance cost 3-4%
- 3-4% Application to closing = 90 days

Taxable Industrial Development Bonds

Manufacturing, industrial and some commercial projects in Broome County can receive considerable benefits by using this tool for fixed asset related expansion projects. Many non-retail uses permitted. Interest from bonds in exempt from NYS income tax but is fully subject to federal taxation.

Features:
- Real Estate/equipment loans - At or near conventional rates
- 15-20 yr. term on real estate
- Practical minimum - $500,000
- Real property tax abatement
- State & local sales tax abatement
- Mortgage recording tax exemption
- Total issuance cost 1.5 - 2%
- Application to closing = 60 days

Sale Lease Back Transactions

In instances where the Broome County Industrial Development Agency is not requested to play a role in the issuance of bonds, many of the above incentives can be accessed by eligible firms through the development of a simple sale/lease-back agreement between the project sponsor and the BCIDA.

Features:
- IDA accepts nominal title to subject property - up to 15 yrs.
- No practical minimum value
- Real property tax abatement
- State & local sales tax abatement
- Mortgage recording tax exemption (if any)
- IDA Fees = 1% of value of project cost
- Application to closing = 60 days