Open Industrial Uses Sales Tax Exemption Program
The Open Industrial Uses Sales Tax Exemption Program (OIUSTEP) provides companies with sales tax exemptions for the purchase of building materials to renovate and improve unenclosed industrial materials storage facilities in order to implement cost-effective pollution prevention controls and to create stronger safeguards for hazardous materials in the city’s flood zones.
Industrial companies that have open storage of materials are encouraged to apply.
Examples of industrial companies with open storage of materials include:
- waste recycling facilities
- scrap metal processors
- automobile dismantling operations
- concrete and asphalt manufacturing
- construction and demolition debris transfer stations
- unenclosed storage of construction materials
Priority will be given to projects that have unenclosed or open industrial uses. The scope of renovations may include improvements to control environmental emissions at open industrial facilities such as paving, grading, containment walls, storm water management systems, and flood-resilient construction.
All improvements must be compliant with existing federal, state and city regulations including, but not limited to, the State Pollution Discharge Elimination System (SPDES), the NYC Air Pollution Control Code, and Appendix G of the NYC Building Code for Flood-Resilient Construction.
Companies may apply between January 1, 2014 and December 31, 2016. Applicants must commence improvements within one year of receipt of the sales tax letter, and the sales tax letter will expire no later than three years from the date of its issuance.
The program provides a sales tax exemption of up to $100,000 per company on the purchase of building materials used for projects consistent with the program parameters (as stated above). Companies seeking benefits must obtain a sales tax letter prior to making any eligible program expenditures.
All NYCIDA benefits are discretionary. NYCIDA staff will evaluate the size of the project as one of the criteria in determining any award of benefits.
The environmental condition of the project site and the company’s liability and other insurance coverage must be satisfactory to NYCIDA prior to closing.
To convey the above-described benefits, approved companies must satisfy all application requirements, including providing proof of insurance coverage (in a form acceptable to NYCIDA), executing a lease agreement pertaining to the materials purchased, and providing due diligence and other background information as part of the OIUSTEP program application. Approved companies who wish to have their contractor make sales-tax exempt purchases will need to submit additional background information pertaining to their contractor.
For more information on the key requirements of the Open Industrial Uses Sales Tax Exemption Program, download the OIUSTEP Fact Sheet.
To request an application for benefits through the Open Industrial Uses Sales Tax Exemption Program, or to get more information, please email [email protected].