Hempstead Town IDA Approves Tax Break For Local PPE Manufacturers

HEMPSTEAD, NY — Frederick Parola, CEO of the Town of Hempstead Industrial Development Agency (IDA), announced a new sales-tax initiative for companies that make or are considering making personal protection equipment (PPE) and other healthcare products to assist healthcare providers in combating the COVID-19 pandemic.

The COVID-19 Relief Equipment Lease Program, approved unanimously by the town IDA board on April 23, will provide manufacturers in the town with a sales tax exemption of up to $100,000 on the purchase of equipment for use in making PPE, medical products and pharmaceuticals.

The IDA authorized the program at the behest of Town of Hempstead Supervisor Donald X. Clavin Jr. “I hope that our local companies will take advantage of this program to manufacture and distribute PPE and other medical supplies for our frontline workers,” said Clavin.

Companies purchasing materials, supplies and equipment to manufacture medical and hospital devices, disinfectants and sanitizers, sterilizing and sanitizing equipment, medicines and pharmaceuticals and over the counter products are eligible for the sales-tax exemption. The products must be for use by medical staff at hospitals and acute care facilities, first responders, home health aides and other providers of direct care to patients.

Among the purchases covered are 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 tele-communication equipment, as well the renovation and repair of existing buildings and facilities necessary for the installation and operation of such machinery and equipment. Businesses that obtain the exemption are subject to IDA oversight and reporting requirements as well as a potential recapture of benefits.

“As we hear about on a daily basis of the significant need in the region and state for PPE and other medical supplies, we anticipate that this demand will continue into the foreseeable future,” Parola said. “We are learning that many manufacturers have the ability to convert or even slightly modify their operations and processes in order to make PPE and we want to be able to assist these businesses any way we can.”

The IDA will charge no fees to companies applying for the COVID-19 sales-tax exemption. Companies and businesses interested in the sales-tax exemption are required to complete the appropriate IDA applications, which are subject to approval by the IDA’s chairman, chief executive officer, the deputy executive director and the chief financial office

For more information about the program go online to TOHIDA.org or call (516) 414-6578.