The SCIDA COVID-19 Sales Tax Equipment Relief Program

Program Overview

The Suffolk County IDA (SCIDA or the IDA) is making available the SCIDA COVID-19 Sales Tax Equipment Relief Program, which will grant sales and use tax exemptions to manufacturers, suppliers, and distributors of personal protective equipment (PPE) for healthcare and medical providers, first responders, home health aids, patients and for residents’ personal use; medical and hospital equipment, disinfectants, sterilizers and sanitizer equipment, products and chemicals; as well as medicine and 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 and repair of existing buildings and facilities necessary for the installation and operation of such machinery and equipment.

Criteria

Open to all businesses in Suffolk County who are currently engaged in the manufacturing, distribution and supply of such products or are beginning to manufacture, supply or distribute such products for the treatment or prevention of COVID-19.

Benefit

Exemption from State and County Sales Tax of 8.625% on eligible purchases.

Streamlined IDA process: No application fees.

Benefits would be up to $100,000 in sales tax exemptions on purchases eligible, building materials or equipment purchase (up to $1,159,420.29 in purchases of eligible building materials and equipment)

Example

You need to purchase $25,000 in sorting equipment, shelving and racking. Your benefit would be $2,156.25 ($25,000 x 8.625%).

Note that you can have costs exceeding $1,159,420.29, however the IDA’s benefit will be provided up to that first $100,000 in costs.

Requirements

• You will be required to fill out an application and sign a certification form.
• You will be required to enter into an Equipment Bill of Sale (the “Bill of Sale”) and an Equipment Lease and Project Agreement (the “Agreement”) between the SCIDA and your business.
• You will be required to submit the amount of project costs that you utilized a sales tax benefit on, along with invoices and receipts or similar proof as backup.  This will be submitted at the 6 month expiration of the project which is the end of your sales tax benefit agreement with the Suffolk IDA.

Note: The sales and use tax exemption will apply to all covered machinery and equipment that is eligible for SCIDA’s sales tax exemption and acquired and installed in the (6) six month period beginning with the signing of the equipment lease and project agreement, unless such (6) six month period is extended by the SCIDA.

Document Check

• Application submitted
• Signed Agreement and Bill of Sale
• ST-60 State Form that the IDA files at the beginning of the project
• ST-340 State form that the business files at the closure of the project

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, SCIDA has other existing programs that are available to assist such applicants.  Interested companies should contact the SCIDA by emailing info@kellym80.sg-host.com (preferred method) or call 631.853-4802.

 

All applicants are strongly encouraged to speak with an IDA representative prior to filling out the application. This way, we can discuss the program and ensure that it is the right direction for your company. We can advise potential applicants on whether they might qualify prior to the full application process.