IBM Quantum Project Sparks Tax Deal Concerns in Poughkeepsie

A $2.5 billion IBM quantum computing project is set to transform the company's campus in Poughkeepsie, but local school officials are voicing concerns about the tax deal approved for the project.

The Dutchess County Industrial Development Agency greenlit tax incentives for the IBM Quantum project following a public hearing on Monday. The package includes over $100 million in sales tax exemptions and a 30-year Payment In Lieu Of Taxes, or PILOT, agreement.

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