IBM Quantum Project Sparks Tax Deal Concerns in Poughkeepsie

A major IBM quantum computing project is moving forward in Poughkeepsie, but local school officials are raising concerns about the tax deal approved for the $2.5 billion initiative.

The Dutchess County Industrial Development Agency approved tax incentives for the IBM Quantum project, including more than $100 million in sales tax exemptions and a 30-year Payment In Lieu Of Taxes (PILOT) agreement.

Under the PILOT agreement, IBM will make negotiated payments instead of paying regular property taxes on the project. The payment schedule starts at around $1 million a year for the first several years before increasing over time.

Spackenkill school officials have expressed concerns that the district is not getting enough under the deal. State Sen. Rob Rolison has spoken with the district superintendent and school board president, urging the IDA and other parties to address their concerns.