Financing Programs

Taking Business to a Higher Level

If you're looking to start, expand or relocate a business in Ulster County, it makes good business sense to call the UCIDA to see if you qualify for any one of our financing and incentive programs. We work with individuals, partnerships and corporations to find solutions that not only fulfill your business needs, but also provide you with abatements and exemptions that will save you money.

UCIDA Bonds

The IDA is authorized to issue taxable and tax-exempt industrial development revenue bonds for qualified projects. Qualified projects include commercial, industrial, manufacturing, tourism and certain types of projects for the not-for-profit sector. Typically, the business project becomes a program of the IDA. Banks, investment bankers, insurance companies and other financial institutions selected by the company to benefit, purchase the bonds. The IDA then sells or leases the project back to the benefiting company, with the lease or purchase payments equivalent to the debt service payments on the bonds.

New York State Tax Exemptions

The IDA offers both taxable and tax-exempt bond financing. Both types of financing give you the following New York State tax exemptions:

Mortgage Recording Tax Exemptions

New York State law imposes a mortgage recording tax in Ulster County of 3/4% of the amount of the loan secured by a mortgage. Financing your project with bonds issued by the IDA would exempt any mortgage securing the bonds from this tax. On a project involving a mortgage securing a UCIDA bond in the amount of $1,500,000, the mortgage recording tax exemption results in savings of $11,250.

Sales Tax Exemption

Financing your project with bonds issued by the UCIDA would exempt purchases from the Ulster County sales and use tax of 81/4% This exemption extends to all equipment purchased by the benefited company, as an agent of the IDA, and all materials incorporated into the facility, as well as items consumed in the construction of the building (such as fuel) and tools rented for the purpose of construction. On a project where $1,000,000 of project costs is subject to sales and use tax, the sales tax exemption results in a savings of $82,500.

County, Municipal, and School Real Property Tax Abatement

IDA bond financing also provides your project with an abatement of real property taxes. By entering into a Payment in Lieu of Taxes (PILOT) agreement your company will receive abatement consistent with the IDA's Uniform Tax Exemption Policy. These payments will be directed to the affected taxing jurisdiction. The amount of the real property tax abatement is determined according to the following formula, where X is the existing assessed value and Y is the increase in assessed value caused by undertaking the project.

Tax Exempt UCIDA Bond Financing Offers Lower Interest Rates

If your project is for a manufacturing facility, a not-for-profit facility, or an exempt facility (i.e. airport, dock or wharf, mass commuting facility, solid waste disposal facility or hazardous waste facility) as defined by the Internal Review Code, the use of tax-exempt IDA bonds could lower your interest rate by 2 to 3% per year.

Access to Public Markets

By using letter of credit-backed taxable or tax-exempt industrial development revenue bonds, companies can sell their debt in the public market without incurring the cost of registration with the Securities and Exchange Commission, allowing them to obtain affordable long-term, fixed rate financing.

Grants Program

UCIDA periodically awards grants to not-for-profit organizations to fund operations or projects that support business or workforce development in Ulster County. Requests should be made using our grants application.

UCIDA Bond and Sale Leaseback Application

PILOT Points Calculator

Grant Criteria & Application