Real Property Tax Exemptions

In most jurisdictions in Herkimer County, commercial or industrial firms undertaking construction, expansion, or improvement projects of more than $10,000, can apply for a graduated exemption from local real property taxation (485b), special ad valorem levies, and service charges. The exemption begins at 50% for the first year and is gradually reduced in the succeeding nine years. When either Industrial Revenue Bond or Straight Lease financing is utilized, all real property taxes are exempted and a reduced payment in lieu of taxes (PILOT) is arranged.

Sales Tax Exemption

There are no local or state sales taxes on utility service or fuels purchased for use directly and exclusively in the production of goods offered for sale. The same holds true for machinery, equipment, parts, component parts, tools, and supplies used directly and predominantly in the production of tangible personal property for sale.

NYS Investment Tax Credit

Businesses that make new investments in production, property or equipment and create new jobs may be eligible for tax credits of up to 10% of their eligible investment. New businesses may elect to receive, as a refund, any unused part of the tax credit earned. All businesses may carry forward any unused portions of the credit for up to 15 years.

NYS Empire State Development

Empire State Development (ESD), through several lending programs, can lend up to 40% of the cost of an eligible project at below market interest rates. Typically, eligible project financing also consists of conventional bank loans and at least 10% of the borrower's equity. ESD can also provide full guarantees of up to 80% of eligible project costs for loans made by most banking organizations. In addition, they can assist with grants for projects and training programs.

[ Visit Website ]

NYS Empire Zones Program

Certain areas of Herkimer County are covered under the NYS Empire Zones Program, offering certified zone businesses access to a variety of tax incentives, including wage tax credits, exemptions from property taxes and state sales taxes.

[ Visit Website ]