Canopy Growth, a Canadian Cannabis producer, could receive a significant tax break on a new industrial park they are building for hemp production.
The plan, developed by Broome Industrial Development Agency, states that Canopy Growth will get a standard 15-year payment-in-lieu-of-taxes deal on their 48-acre property that will reduce taxes by $1.7 million over the life of the agreement.
The deal gives the company a 39% reduction in property taxes for the first five years of the Kirkland plant, according to the Binghamton Press & Sun Bulletin.
That means Canopy Growth will pay $192,000 in property taxes instead of $312,000 until 2024. Then their taxes will jump to $252,000 from 2025 to 2029. Finally, the company will pay $282,000 in property taxes for the period from 2030 until 2034.
The plant is a factory that used to make vacuum cleaner motors. Canopy Growth is expected to invest more than $100 million to renovate and outfit the site to extract CBD. The property was acquired from ShopVac earlier this year for $9.5 million.
The company’s plan for the plant has them hiring 75 workers that are paid between $30,000 and $50,000 a year after three years of operation. The exact time that it takes the company to ramp up productions might end up being delayed due to the extensive renovations required in the building. The workers will be part of a vape and gummy production line.
The state of New York issued 500 licenses to hemp growers, and 100 to processors this year. The state’s Department of Agriculture and Markets is looking to develop regulations to ensure the quality of CBD products produced.