Champlain Hudson Power Express Seeks Major Tax Breaks in Ulster and Dutchess Counties

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Champlain Hudson Power Express, the company behind a 1,250-megawatt electric transmission line running down the Hudson River, is seeking significant tax breaks from municipalities in Ulster and Dutchess Counties in New York. The company is requesting payment-in-lieu-of-taxes (PILOT) agreements that would reduce its property tax bills by over 50% in some areas, as well as exemptions on sales taxes and mortgage recording taxes.

Why it matters

The proposed tax breaks have sparked concerns from local officials who argue the company should not receive such large reductions, especially since the $6 billion transmission line project is already completed. There are also worries about the environmental impact of the line and the lack of direct electricity benefits for nearby communities.

The details

Champlain Hudson Power Express is seeking PILOT agreements that would reduce its property tax assessments by over 50% in municipalities like the towns of Red Hook, Ulster, and Saugerties. For example, in Red Hook the company wants to pay only $8,818 in the first year, a 50.44% reduction from the estimated $17,792.41 it would otherwise owe. The company is also requesting exemptions on $13.57 million in sales taxes (a 98.31% reduction) and $1.25 million in mortgage recording taxes in Dutchess County.

• Champlain Hudson Power Express assessments and tax proposals were made available to municipalities in October 2025.
• A public hearing on the tax breaks was held by the state Department of Taxation and Finance on March 12, 2026.
• The Red Hook Town Board discussed the tax break request at a meeting on March 25, 2026.

What they’re saying

What’s next

Local officials in Ulster and Dutchess Counties will continue to review and negotiate the tax break requests from Champlain Hudson Power Express in the coming months.