NYSEDC's 900 members work to build vibrant, diverse, and sustainable communities throughout New York State.

Industrial Development Agencies

The purposes of Industrial Development Agencies (IDAs) are to promote, develop, encourage and assist in the acquiring, constructing, reconstructing, improving, maintaining, equipping and furnishing industrial, manufacturing, (civic facilities), warehousing, commercial, research and recreation facilities including industrial pollution control facilities, educational or cultural facilities, railroad facilities, horse racing facilities … and continuing care retirement communities, and thereby advance the job opportunities, health, general prosperity and economic welfare of the people of the state of New York and to improve their recreation opportunities, prosperity and standard of living.

IDAs can assist economic development projects by:

  • Issuing tax exempt and taxable bonds for qualifying projects
  • Conveying real property tax abatements, typically through a PILOT or straight lease transaction (Typical PILOT is similar to 485-B RPT incentive)
  • Abating sales taxes for construction materials and equipment
  • Abating mortgage recording taxes
  • Eminent domain (Except NYC IDA)

The types of projects that IDAs can assist include:

  • Industrial
  • Commercial
  • Retail under very limited circumstances
  • Industrial Parks
  • Horse racing facilities
  • Railroad facilities
  • Life care communities
  • Waste disposal facilities
  • Low-income rental housing units
  • Not-for-profits (Private 501(c)(3) entities: For example, YMCAs, CP Centers, private secondary schools, habilitation centers, and museums
    • College dormitory*
    • Senior living facilities*
    • Hospital projects involving the delivery of medical services*

*subject to $20 million project cap

An example of IDA benefits

Project “X” builds 50,000 sq. ft. building for $5,000,000, and has $4,000,000 mortgage. Tax benefits would include:

  • Mortgage recording tax savings (1% of mortgage) = $40,000.
  • Real Property Tax abatement = $275,000 over 10 years (Based on assessment of $2/sq. ft with a 485-B-type PILOT over 10 years w/ average annual savings of 27.5%.)
  • Sales tax savings on construction materials and non-manufacturing equipment = $120,000 + $54,000 = $174,000
  • Total savings over 10 years = $489,000.