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Tax Breaks & Subsidies and New York
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Lewis County is set to lose millions of dollars in Empire Zone money, but the head of the state's Empire Development Agency says that could change.
Each year, the county has received $2 million in Empire Zone money to use toward its budget.
Without the credits, that amount shrivels to $500,000.
Jefferson County's Board of Legislators slowed down its consideration of the payment-in-lieu-of-taxes agreement for the proposed Galloo Island Wind Farm. ...Chairman Barry M. Ormsby, R-Belleville, said representatives of the Jefferson County Industrial Development Agency and Galloo Island's developer, Upstate NY Power Corp., would come to the meeting.
Mr. Ormsby said they also would allow the public to speak during privilege of the floor, though no public hearing is required.
The payment-in-lieu-of-taxes agreement for the proposed Galloo Island Wind Farm would take some money that normally would go to the school district and give it to the town.
The PILOT would send 50 percent to Sackets Harbor Central School District, 15 percent to the town of Hounsfield and 35 percent to Jefferson County. The three are splitting a $2.14 million pie, which will increase 2.5 percent each year for 20 years.
The proposed Galloo Island Wind Farm is ready to agree to spend more than $2 million per year as part of a payment-in-lieu-of-taxes agreement, but it stands to save nearly $23 million in other tax abatements.
Officials from the town of Hounsfield, Sackets Harbor Central School District and Jefferson County are firming up their division of a property tax PILOT, which will generate $2.14 million per year.
A handful of people from outside Hounsfield commented on the proposed Galloo Island Wind Farm payment-in-lieu-of-taxes agreement Monday night.
The PILOT considered at the hearing, held by the Jefferson County Industrial Development Agency, only covers the 84 turbines and ancillary structures on the island and the underwater transmission line in Hounsfield. There will be PILOT negotiations and a public hearing sometime in the future for the part of the 50.6-mile transmission line that runs from Henderson to the town of Mexico.
To meet a developer's request for speed, the Jefferson County Industrial Development Agency will begin laying out a property tax relief program for the proposed Galloo Island Wind Farm.
While the payment-in-lieu-of-taxes agreement will follow the formula developed for a uniform tax-exempt policy, JCIDA will not seek approval of the uniform policy now. That would require all affected taxing jurisdictions from the four proposed wind projects to sign on, which officials believe would take too long.
Also filed under [
General]
While hopeful that the Maple Ridge Wind Farm will retain Empire Zone benefits, local leaders are preparing for the worst-case scenario: a $6.3 million drop in combined wind-farm revenue for area governments.
While Lewis County projected $2.16 million from the wind farm in this year's budget, the proposed 2010 budget likely will include only about $600,000, the amount the county would receive if Empire Zone benefits are revoked, County Manager David H. Pendergast said. That's nearly a $1.6 million reduction.
Representatives of town governments want more of the financial pie from new industrial wind power developments, but many Cattaraugus County residents say they are financed by federal debt and long-range costs to the community will outweigh benefits.
These sentiments dominated three public hearings on a tax-incentive proposal for wind developers by the Cattaraugus County Industrial Development Agency.
The Cattaraugus County Industrial Development Agency will seek public comments at 6:30 p. m. tonight, Wednesday and Thursday in hearings on proposed revisions to the agency's uniform tax exemption policy to accommodate wind farm developments.
The revisions, if adopted, will set a schedule for payments-in-lieu-of-taxes.
Not only is Lewis County dealing with a decrease in sales tax revenue and a lack of information about how much state aid it will receive, it's also dealing with the loss of a major money maker.
The Maple Ridge Wind Farm ...recently lost its certification as part of the state's Empire Development Zone, which means it lost critical tax breaks and other business incentives.
State Public Service Commission approves $95 million for renewable energy projects
August 20, 2009 by Tim Knauss in The Post-Standard
August 20, 2009 by Tim Knauss in The Post-Standard
State utility regulators today authorized an auction to distribute $95 million to new power plants fueled by the wind, the sun, biomass or other renewable sources.
The auction will be the fourth conducted under a standing state mandate to derive 25 percent of New York's electricity from renewable energy sources by 2013. Members of the state Public Service Commission ...noted that the time is right for new renewable energy projects.
Also filed under [
Energy Policy]
Tax-exempt policy for wind farms hits new hurdle
July 10, 2009 by Nancy Madsen in Watertown Daily Times
July 10, 2009 by Nancy Madsen in Watertown Daily Times
Low electrical transmission capacity is not only making it difficult for wind power developers to figure out how to connect to the grid; it's created another hurdle for development of a uniform tax-exempt policy.
The Jefferson County Industrial Development Agency was charged with creating the policy to guide all payment-in-lieu-of-taxes agreements for wind farms by the county Board of Legislators last year.
The board of directors of the Cattaraugus County Industrial Development Agency is expected to review a proposed agency policy Tuesday that will establish how much industrial-scale wind farms must pay to local taxing authorities during their incentive periods.
The IDA provides tax exemptions for 10 to 15 years, along with other incentives, to developers seeking assistance and conduit loans.
AES SUIT: Judge invalidates payment-in-lieu-of-taxes agreement
May 2, 2009 by Joyce Miles in Lockport Union-Sun & Journal
May 2, 2009 by Joyce Miles in Lockport Union-Sun & Journal
A Friday ruling by the State Supreme Court Appellate Division, Fourth Judicial Department, invalidated the 12-year payment-in-lieu-of-taxes deal given to the power generator by the Niagara County Industrial Development Agency in October 2006. ...The IDA had granted the power company a 12-year, $192 million PILOT in exchange for the company's promise to pursue a shot at building a state-subsidized clean coal plant under former Gov. George Pataki's Advanced Clean Coal Initiative.
Many of the north country's 165 businesses that receive Empire Zone tax breaks could lose the benefit under the state's new budget agreement.
State officials say the Empire Zone program is being abused by companies that are getting tax breaks without generating new jobs. ...In the new regulations, a measure is included to kick out businesses that have not matched dollar-for-dollar wages and capital investments with the tax breaks they received.
The Cattaraugus County Legislature will be represented on a panel that will work with town and school delegates to set up a tax-exemption policy for the Cattaraugus County Industrial Development Agency’s wind farm projects.
A blanket state tax exemption for wind farms and other alternative energy systems was lifted in the county by the Legislature in 2008 following a lengthy debate.
Also filed under [
Impact on Economy]
The Naples School Board voted last week to accept an agreement with First Wind that would give the district higher payments on any windmills the company may build within the district boundaries. ...At this point, Macaluso said First Wind has put the project on hold because of finance troubles.
Also filed under [
General|
Impact on Economy]
Maple Ridge Wind Farm jurisdictions hire lobbyist
February 5, 2009 by Steve Virlker in Watertown Daily Times
February 5, 2009 by Steve Virlker in Watertown Daily Times
Taxing jurisdictions benefiting from the Maple Ridge Wind Farm have retained an Albany firm to lobby against proposed Empire Zone program changes that could impact future revenues.
"We've got a lot of money at stake," Lewis County Attorney Richard J. Graham said at Tuesday evening's legislators meeting.
County legislators approved an agreement with Capitol Public Strategies to provide consulting services for up to $7,500 per month for the next four months.
New PILOT deal moves Prattsbrugh wind farm project ahead
January 22, 2009 by Mary Perham in The Courier
January 22, 2009 by Mary Perham in The Courier
A new tax incentive is in place for the stalled First Wind wind farm project in Prattsburgh, pending what officials hope is the final approval by the Naples Central School District next week.
The Steuben County Industrial Development Agency signed on to a new payment-inlieu of-taxes (PILOT) agreement that will provide more money to the Prattsburgh and Naples school districts while also increasing the town of Prattsburgh's share.
Legislature accepts PILOT proposal for wind turbines
November 17, 2008 by David Robinson in Evening Telegram
November 17, 2008 by David Robinson in Evening Telegram
The passage of a resolution by the Legislature last Wednesday established Herkimer County's negotiating position regarding payment in lieu of taxes agreements for wind projects: Closing an interconnected effort amongst affected municipalities and school districts over four years in the making.
Ongoing proposals by Iberdrola Renewable Energies to build wind turbines include: The Hardscrabble Project in the towns of Norway and Fairfield, with Owen D. Young Central School District; and the Jordanville Project in the towns of Stark and Warren, with West Canada Valley Central School District.
The resolution sets a PILOT payment of $8,000 per megawatt.
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