Canopy Growth’s industrial hemp processing plant in Kirkwood will qualify for a property tax break under a plan set in motion by the Broome Industrial Development Agency this week.

Canopy will be granted a standard 15-year payment-in-lieu-of-taxes agreement that will trim the property tax bill by more than $1.7 million over the life of the agreement. [See the schedule below]

Under the terms of the proposed deal, the Canadian company will qualify for a 39% reduction in property taxes over the first five years of the 15-year term of the agreement.

Next year and through 2024, Canopy will pay $192,000 in property taxes versus a full tax bill of $312,000. From 2025 through 2029, property tax payments will be $252,000, and from 2030 through 2034, $282,000.

The company is now outfitting a former vacuum cleaner motor factory at 47-51 Pine Camp Drive for industrial hemp processing. It expects to invest more than $100 million in renovation and outfitting the site for cannabidiol extraction.

After three years, the company expects to have 75 workers at the site, with a bulk of them paid between $30,000 and $50,000 annually, according to the application on file with the IDA.