Revolving Loan Fund
The Yates County IDA helps in the aid and support of local economic development projects by providing financial assistance in the form of the Yates County Revolving Loan Fund. The mission of the Yates County RLF is to provide high quality employment opportunities for people within Yates County. To achieve this goal, the Yates County RLF makes available supplemental loans at interest rates below market standards for manufacturers and other businesses that meet the criteria for the program. Sole source financing or gap financing are available for those who qualify.

Click here to download the Yates County Revolving Loan Fund Application (PDF File)

Mortgage Recording Tax Exemption
To record mortgage recording tax is due at the time of recording and is 1% of the total purchase price. If an IDA is in title at the time the mortgage is recorded, the IDA will mortgage its interest in the property (exempt from the mortgage recording tax under GML & 874) and the Company will simultaneously mortgage its interest in the property (exempt from the mortgage recording tax under RPTL & 255). Example: On a project involving a mortgage securing $1,500,000 of indebtedness, the exemption results in a savings of $15,000.

Sales and Use Tax Exemption
Significant savings can be enjoyed by the Company when they qualify for the Sales and Use Tax Exemption. The current rate for the Sales and Use Tax in Yates County is 8% and for those who qualify all purchases by the IDA or its agency are exempt from the Tax under GML & 874. When an IDA or its agents are participants in a project it authorizes the Company to act as its agent for purposes of acquiring, constructing, reconstructing, and/or equipping a project. Example: On a project where $1,000,000 of the project costs are subject to Sales Tax, this exemption results in savings of $80,000.

Real Property Tax Abatement (PILOT)
The property owned or under the control of an IDA is not subject to real property taxes under GML & 874. Therefore, when an IDA takes title to real property it is 100% exempt from real property taxes. In order to accommodate the needs of the local tax jurisdictions it is common for an Industrial Development Agency to negotiate with the Company a Payment In Lieu of Taxes (PILOT) to a the affected tax jurisdictions. Given that each project is examined on a project-by-project basis, it is difficult to estimate the savings that can be provided by the Real Property Tax Abatement but suffice it to say that the abatement is generally a significant cost savings to the Company.

Tax Exempt Bonding (Reduced Interest Rate)
Under New York State Law, an IDA is authorized to issue bonds and notes. Subject to the limitations imposed by the Internal Revenue Code of 1986, as amended, the IDA can issue tax exempt bonds, the proceeds of which can be used to fund all or substantially all of the costs of a project. If a project meets qualifications requirements, the next step is to inquire whether the issuance of tax exempt bonds by the Agency is cost effective for the project. If the project does not qualify for use of proceeds from a tax exempt bond issued by an IDA, the Company should borrow the money directly from banks or other available sources.

It is important to understand that an IDA provides no credit enhancement and issues bonds on a non-recourse basis. Therefore, the ability to sell the bonds is premised solely on the creditworthiness of the Company. While IDA involvement does not guarantee the bonds in any way, the involvement does convey certain value to the lender, includes (1) lower start up costs based on incentive packet (2) a known, or predictable, phase-in of property taxes and (3) a local commitment to the project.

Straight Lease Agreement
An IDA assisted project may include bonding, either tax exempt or taxable, and include incentives such as Mortgage Recording Tax Exemption, Sales and Use Tax Exemption, and Real Property Tax Abatement, or be strictly a straight lease arrangement whereby the Agency assumes title and conveys financial incentives but financing is obtained via conventional means.

Applications for Yates County IDA Assistance

Click here to download the Tax Exempt Bonding Application (PDF File)

(Includes access to Tax-exempt bonding, mortgage recording & sales tax abatement and PILOT program).

Click here to download the Straight Lease Agreement Application (PDF File)

(Includes access to mortgage recording tax & sales tax abatement and the PILOT program).

Click here to download the Environmental Assessment Form (PDF File)

(Required for every IDA project application to comply with NYS SEQR law).

Empire Zone
The Empire Zone program enacted by New York State and is expected soon in Yates County. With over 82 zones across the State and 380,000 people employed in an Empire Zone, the success of the program is evident and will aid our region with benefits for businesses and employers.

Please visit our website in the near future to learn more about when Yates County will become certified and the benefits we can pass along to you and your organization.

For more information about the Empire Zone program, please visit Empire State’s Empire Zone page http://www.nylovesbiz.com/Tax_and_Financial_Incentives /Empire_Zones/default.asp or
the Department of Taxation and Finance Empire Zone Page http://www.tax.state.ny.us/sbc/empire_zone.htm

Related Links
Yates County Workforce Development
http://www.yatescounty.org/display_page.asp?pID=89

Yates County Workforce Board - http://www.fingerlakesworks.com/

Small Business Administration - http://www.sba.gov/

NYS Small Business - http://nylovessmallbiz.com/home.asp

NYS Department of Labor - http://www.labor.state.ny.us/

For more information on the programs made available by Yates County, or the Yates County Industrial Development Agency, contact the Yates County IDA at info@YatesIDA.com or 315-536-7328.

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