Programs
The City of Poughkeepsie recognizes the many challenges involved in starting or relocating a business. The following programs are designed to assist businesses, large and small, in making that crucial next step.
The EDLF offers low-interest rate loans to new and expanding businesses in the City of Poughkeepsie. The main objective of this loan fund is to encourage business growth and create and/or retain jobs for low and moderate-income City residents. Under present terms, subject to adequate credit history, owner equity, collateral and financials of business and principals, a maximum of $50,000 is available at prime or below prime interest rate with repayment options up to 15 years. Loan funds may be used for partial remodeling or fit-up costs, leasehold improvements, machinery and equipment and inventory (start-up businesses only). The EDLF is funded through the Community Development Block Grant and is subject to availability.
The Poughkeepsie/Dutchess Empire Zone offers powerful incentives to encourage employment growth and attract new investment within the designated areas. Most benefits are based on tax incentives made possible through the New York State Empire Zone Programs. There are tax advantages for business expansion and for property owners.
New businesses or businesses coming from another state could be virtually tax-free through New York State Empire Zone tax credits or refunds.
If your business is already operating in New York State, eligibility for Empire Zone incentives may vary depending on your business activity in the Empire Zone and throughout the state.
The Empire Zone also provides special opportunities to borrow or raise investment capital.
This incentive is optional for each taxing jurisdiction. If the jurisdiction adopts this incentive, real property constructed, altered, installed, or improved in the Empire Zone shall be exempt for up to seven years from any taxes on the increases in assessment, which may result from such improvements. This period of the exemption is followed by a three-year phase-in, during which time taxes are paid on the additional assessment at increasing increments of 25% each year.
EXAMPLE:
The schedule of the tax-applied to the increase in assessment is:
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0%
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Years 1–7
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25%
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Year 8
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50%
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Year 9
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75%
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Year 10
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100%
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Year 11
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Only the City of Poughkeepsie and the City of Poughkeepsie School District has the full exemption applicable to newly constructed property. The exemption applies to all improved property, including residential. To apply for the exemption, the property owner must apply to the assessor prior to the close of the municipal assessment rolls for that year. The property owner is not required to be a certified business.
The 485e exemption is in addition to the EZ Real Property Tax Credit. Please contact EZ staff for current local status.
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