
Economic Success Starts Here
Economic Success Starts Here
In Franklin County, you can count on low tax rates for your business or residence. Here, you’ll find a host of business incentives and a team ready to provide support at every turn. Tax incentives are designed to increase employment, improve and develop our county, and bring new business to the region.
Frontier Facts
- Industrial Revenue Bonds
- Tax Exemption
- Payment in Lieu of Taxes
- New York State
Bonds
Industrial Revenue Bonds
The IDA can issue tax-exempt debt for some types of projects like manufacturing that can result in lower interest rates.
Tax Exemption
Sales & Use Tax Exemption
Eligible projects can receive an exemption from New York State and Franklin County sales taxes on eligible construction materials and equipment. The combined NYS and Franklin County sales tax is 8%. The exemption is generally limited to the construction, reconstruction or installation period and cannot cover ongoing operational costs.
Mortgage Recording Tax Exemption
The IDA can provide an exemption to eligible projects from New York State’s mortgage recording tax which is 1% in Franklin County.
PILOT Learn More
The IDA can provide eligible projects an exemption from property taxes that is accompanied by a payment in lieu of tax agreements (PILOT) in accordance with its Uniform Tax Exemption Policy. The term and amount of the PILOT is negotiated on a case-by-case basis based on the positive impacts the project will have on the community and the needs of the sponsor.
What is a PILOT?
PILOT payments are Payments-In-Lieu of Taxes. They are not taxes. Instead, a company makes payments to affected taxing jurisdictions (e.g. Franklin County, a village or town, and a school system) on an agreed-upon schedule, after which they pay taxes on the full assessed value of their project. This lowers the expense for a company in their startup or expansion phase, but provides for long term revenue to the taxing jurisdictions in exchange for the investment and job creation.
How does a PILOT work with other tax exemptions?
A PILOT is part of the IDA Uniform Tax Exemption Policy (pdf) which provides exemption from real property taxes, mortgage recording tax and sales tax. These are substantial expense items, and to qualify as exempt from payment may assure the feasibility of the project.
What does a PILOT cost?
There are two primary expense items to obtain a PILOT and other tax exemptions, and these are Legal Fees and Agency Fees. Legal fees are quoted on a case-by-case basis since no two projects are exactly the same. Agency Fees, though, are the same for everyone.
NYS Programs and Incentives
Excelsior Jobs Program
Its most popular program is the Excelsior Jobs Program. There are a variety of tax credits available through the program.
Regional Economic Development Council Initiative
Funding is also available through the Regional Economic Development Council Initiative. This initiative consolidates a number of funding programs into a single application process.