IBM Quantum Project Sparks Tax Deal Concerns in Poughkeepsie

A $2.5 billion IBM quantum computing project is moving forward in Poughkeepsie, New York, despite concerns from local school officials about a tax deal approved for the project.

The Dutchess County Industrial Development Agency approved over $100 million in sales tax exemptions and a 30-year Payment In Lieu Of Taxes (PILOT) agreement for IBM. Under this agreement, IBM will make negotiated payments instead of paying regular property taxes on the project, with the payment schedule starting at around $1 million per year for the first few years before increasing over time.

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

The project includes about 300,000 square feet of new and renovated space, according to Town of Poughkeepsie Supervisor Rebecca Edwards. IBM plans to build its Poughkeepsie campus into a major center for next-generation quantum computing by 2029, with the company announcing plans to invest $20 billion across the Hudson Valley over 10 years.