Dutchess IDA Approves PILOT for IBM’s $2.5 Billion Quantum Computing Project

The Dutchess County Industrial Development Agency has approved a package of financial incentives for IBM’s planned $2.5 billion quantum computing expansion at its Poughkeepsie campus, moving the major economic development project another step forward.



The newly approved incentives include a 30 year Payment in Lieu of Taxes, or PILOT, agreement and more than $100 million in sales tax exemptions associated with the development.

IBM’s plans call for approximately 300,000 square feet of new and renovated space at its South Road campus in the Town of Poughkeepsie. The project will support the company’s expansion of quantum computing operations, including its previously announced plans to build IBM Quantum Starling, a large scale, fault tolerant quantum computer, at a new Quantum Data Center in Poughkeepsie.

As part of the project, IBM is demolishing one existing building and renovating another to accommodate the new facilities. The company has said Quantum Starling is expected to be operational by 2029.

The PILOT agreement will provide negotiated payments to Dutchess County, the Town of Poughkeepsie and the Spackenkill Union Free School District in place of traditional property taxes. IBM also reached a separate $54 million agreement with the Town of Poughkeepsie that will provide the town with $1.8 million annually for 30 years.

The incentive package has generated some concern from the Spackenkill Union Free School District regarding its share of PILOT revenue. State Senator Rob Rolison has called for the district’s concerns to be addressed while expressing support for IBM’s overall investment in the region.

The $2.5 billion expansion represents a significant investment in Dutchess County and further strengthens the Hudson Valley’s role in the advanced technology sector. Beyond the IBM