ELLIOTTVILLE — The Cattaraugus County Industrial Development Agency has approved a new small manufacturing sales tax exemption policy designed to help small manufacturers and spur job creation.

IDA executive director Corey Wiktor said the application fee is $120 as compared to the existing fee structure, which can climb to $4,000 to $5,000 for a small project.

In June, the IDA approved a pilot sales tax abatement project for a small start-up company, Opferbeck Consulting Inc., to equip a 12,000-square-foot space at the Ashford Office Complex in Ashford Hollow.

The company assembles remote monitoring systems and some light manufacturing is involved.

On Tuesday, the IDA met at the Olean Business Development Offices in Olean, where they authorized a new policy involving a streamlined sales tax abatement application for small manufacturers.

It authorizes sales tax abatement of up to $99,000 for applicants meeting the criterion for approval. Wiktor said items exempted from sales tax would include furnishings, fixtures and equipment, design software and other items.

“Sometimes our programs aren’t crafted for smaller projects,” Wiktor said. “If this will help promote small business projects and retain or increase jobs, it’s working.”

Wiktor said, “It’s a step in the right direction to try to transform from the larger projects to include smaller manufacturers.”

Most of the projects seeking IDA sales, property and mortgage tax abatement are in the $500,000 and up range.

Wiktor hopes the IDA board of directors will extend the sales tax abatement program to commercial businesses including the service industry and tourism.

“Right now, we want to try to help some small manufacturers grow their business and retain or increase employment,” Wiktor said.

There will be some expectation of job growth associated with the sales tax breaks, Wiktor added.

The IDA recently surveyed about 30 small manufacturers in the county, a third of which expressed interest in the program, Wiktor said. It may help spur some small manufacturers and assemblers to invest in their businesses.

“If we can help one business, it’s better than zero,” Wiktor said. “How do we help a smaller business or start-up?”

(Contact reporter Rick Miller at rmiller@oleantimesherald.com. Follow him on Twitter, @RMillerOTH)