Covid 19 Sales Tax Program

COVID-19 Sales and Use Tax Relief Program Overview

The Town of Brookhaven Industrial Development Agency’s (“IDA”) COVID-19 Sales Tax Relief Program (the “Program”) will grant sales and use tax exemptions of up to $100,000 to manufacturers, suppliers and distributors of personal protective equipment (“PPE”) and other COVID-19 recovery products. These products may be used by health care and medical providers, first responders, home health aides, COVID-19 patients, and for residents’ personal use. PPE may include medical and hospital equipment, disinfectants, sterilizers and sanitizer equipment, products and chemicals, as well as, medicine, pharmaceutical products and over the counter drugs to be used in the treatment and prevention of COVID-19. 

The Program will apply to the acquisition and installation of machinery and equipment, including manufacturing and production equipment, material handling equipment, racking, shelving, storage and sorting equipment, computers, hardware, software and telecommunication equipment, as well as the renovation, repair, and/or retrofit of existing buildings and facilities necessary for the installation and operation of such machinery and equipment. In addition, the equipment and other purchases under this Program must be physically located in the Town of Brookhaven in accordance with New York State Law.

Criteria
The program is open to all businesses in the Town of Brookhaven that are currently engaged in or are beginning to manufacture, supply and/or distribute products for the treatment or prevention of COVID-19.

Benefit

  • Exemption from State and County Sales and Use Taxes (8.625% on eligible purchases).
  • Streamlined IDA process with no fees.
  • Benefit up to $100,000 in sales and use tax exemption. (Up to $1,159,420.29 in eligible purchases.)
  • The sales and use tax exemption benefit will apply to eligible purchases made in the six (6) month period beginning with the signing of the required program Agreements. The six (6) month period may be extended by the IDA.
  • Example – Your business needs to purchase $25,000 in sorting equipment, shelving and racking related to COVID-19 response. Through this program, you would save $2,156.25 in exempted sales tax ($25,000 X 8.625%)
  • Note – Your costs can exceed $1,159,420.29; the COVID-19 Sales and Use Tax Relief Program benefits, however, will only be provided up to the first $100,000 in taxes exempted.

Requirements

  1. Eligible businesses will be required to complete an application, which includes signing a certification form.
  2. Eligible businesses will be required to enter into an Equipment Bill of Sale and an Equipment Lease and Project Agreement between the business and the IDA.
  3. At the end of the 6-month program period, businesses that participate in the program will be required to submit evidence of total project costs and total exempted sales and use taxes.
  4. Required documents include:
    1. a complete and accurate application;
    2. a fully executed Equipment Bill of Sale and Equipment Lease;
    3. an ST-60 form, which the IDA will file with NY State after the agreements have been executed;
    4. an ST-340 form, which the business must file with NY State at the culmination of the agreement. 

For applicants who need to build or acquire new buildings or expand existing facilities or who need more than $100,000 of sales and use tax exemptions or other benefits, the IDA has other existing programs available. Please call the IDA at (631) 451-6563 for more information.

 

Town of Brookhaven Industrial Development Agency COVID-19 Sales Tax Relief Program

The Town of Brookhaven Industrial Development Agency’s (IDA) COVID-19 Sales Tax Relief Program (the “Program”) will grant sales and use tax exemptions of up to $100,000 to manufacturers, suppliers and distributors of personal protective equipment (“PPE”) and other COVID-19 recovery products. These products may be used by health care and medical providers, first responders, home health aides, COVID-19 patients, and for residents’ personal use. PPE may include medical and hospital equipment, disinfectants, sterilizers and sanitizer equipment, products and chemicals, as well as, medicine, pharmaceutical products and over the counter drugs to be used in the treatment and prevention of COVID-19.

The Program will apply to the acquisition and installation of machinery and equipment, including manufacturing and production equipment, material handling equipment, racking, shelving, storage and sorting equipment, computers, hardware, software and telecommunication equipment, as well as the renovation, repair, and/or retrofit of existing buildings and facilities necessary for the installation and operation of such machinery and equipment. In addition, the equipment and other purchases under this Program must be physically located in the Town of Brookhaven in accordance with New York State Law.

The Program is available to all businesses in the Town of Brookhaven who are currently or are beginning to manufacture, supply and/or distribute such products for the treatment or prevention of COVID-19. The program is being offered free of charge; and companies will be able to utilize the sales and use tax exemption as soon as the documents are executed.

In order to receive the sales and use tax exemption of up to $100,000, an interested company or business should contact the Brookhaven IDA at (631) 451-6563 to request an application. Approved applicants will enter into an Equipment Lease and Project Agreement, which will grant the sales and use tax exemption to the applicant. The sales and use tax exemption will apply to all covered machinery and equipment that is acquired and installed in the six (6) month period beginning with the signing of the Equipment Lease and Project Agreement. The six (6) month period may be extended by the Brookhaven IDA. There is no charge for this program; and once a complete application is received, the process has been streamlined to allow applicants to utilize the exemption quickly.

Per New York State Law, the IDA cannot retroactively provide a sales tax exemption for costs incurred prior to the approval of the Program by the IDA Board of Directors or prior to the execution of the Equipment Lease and Project Agreement.

For applicants who need to build or acquire new buildings or expand existing facilities or who need more than $100,000 of sales and use tax exemptions or other benefits, the IDA has other existing programs available.

Please call the IDA at (631) 451-6563 for more information.

Contact Us

  • One Independence Hill
    Farmingville, New York 11738

  • Tel: 631-451-6563
    Fax: 631-451-6925

  • Brookhaven IDA

  • www.brookhavenida.org