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Tax incentives OK’d for Busti solar projects

A pair of solar projects in the southern end of the county have received financial tax incentives.

During the Chautauqua County Industrial Development Agency meeting, board members approved various Payment In Lieu Of Taxes agreements for a 4.75 megawatt solar project and a 3 megawatt solar project. The two solar projects are to be constructed on 28.2 acres of land located at 1192 Orr St., Busti.

Combined, the two solar projects are expected to cost $19.6 million to construct.

The county IDA first heard about the project at its meeting in November, however the project had previously been before the Busti Town Board which gave its approval.

Generally the county IDA won’t approve any tax incentives without the local town government giving its support first.

Rosemarie Strandburg with the county IDA said the PILOT agreements are for 25 years. The total exemptions for sales tax is $1.2 million and the total property tax abatement is $2.1 million.

The payments to the affected taxing jurisdictions will be $860,822.

A public hearing was held in early February. A representative with one of the school districts spoke up and expressed concerns about how PILOTs can affect schools. Strandburg said they did not oppose this specific project.

IDA attorney Milian Tyler said that with PILOTs, the land itself does not get a tax break.

“With all of these projects, we do not take the land off the tax rolls. It’s only the arrays that are a separate tax slot. So it’s added to all the affected tax jurisdictions. Taxes never go down. They only go up to the PILOT payments,” he said.

The resolutions were unanimously approved.

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