Bethpage studios seek IDA tax aid for $6 million solar panel project

The company that turned a Bethpage aircraft factory into sound stages for film and television production is requesting $124,800 in tax breaks from Nassau County to install a large array of solar panels.

Grumman Studios is spending $6.2 million on the solar panels, along with a battery storage system, to generate electricity by next year. The project would produce 3 megawatts for use by businesses and homes across Long Island, officials said.

Grumman Studios has applied to the county’s Industrial Development Agency for an exemption from local sales taxes on the purchase of the solar panels, batteries and other equipment. They aren’t subject to state sales tax.

The IDA board voted unanimously last week to begin negotiations with the company.

"The electricity that we produce will be put onto the [electric] grid" for use by companies and homeowners, Grumman Studios owner Parviz Farahzad said this week. "The revenue will offset our electric bill, which is between $300,000 and $500,000 a year."

The sales-tax exemption is part of a new IDA policy that encourages businesses to adopt alternative energy systems and reduce pollution. Grumman Studios in the first to seek the tax break since the policy was adopted in July.

"Movie production is a very clean industry…We don’t generate any fumes," Farahzad told Newsday. "This will make us more green."

Grumman Studios and a sister production facility in Port Washington were awarded tax breaks previously by the IDA. Farahzad said he learned of the agency’s environmental protection policy from EmPower Solar, which is installing the solar panels and battery storage units at Grumman Studios and will oversee their operation.

David G. Schieren, CEO and co-founder of Island Park-based EmPower, said Grumman Studios will save about 10% on its electric bill. The company also is eligible for a 26% federal tax credit on the solar panels and a state rebate on the batteries.

Schieren said 40% of the electricity produced by the Grumman Community Solar Project will be used by businesses and 60% by homes.

Of the IDA's environmental protection policy, he said, "This levels the playing field for Nassau County. It has been at a competitive disadvantage with Suffolk County, which doesn’t apply the sales tax to solar power [construction projects].

IDA chairman Richard Kessel credited Legis. Siela A. Bynoe (D-Westbury) for suggesting the policy more than a year ago.

"We want to encourage more solar installations in the county...The more green [the project], the better," he said.

By James T. Madore

james.madore@newsday.comJamesTMadore

James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.