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PILOT Deal Structure Calculator

PILOTs trade fixed payments for variable tax over long periods.

$
$
%

Total savings

$8,990,027

Annual savings year 1

$370,000

Savings %

0.44%

How the math works

Annual savings = full − PILOT. Total over term with escalation.

$850k − $480k = $370k/yr year 1 × ~20 yrs escalated = $8.2M total savings.

How to Use

  1. Enter full tax assessment.
  2. Enter PILOT annual payment.
  3. Enter term years.
  4. Enter escalation %.
  5. Read total PILOT value.

Frequently Asked Questions

PILOT vs tax?

PILOT: fixed or formula-based payment negotiated with taxing authority. Avoids assessment volatility. Typical 50-80% of market tax. Trades certainty for potential upside. 20-30 year terms.

PILOT user?

Nonprofits (required in some states). Economic development zones. Brownfield redevelopment. Publicly-subsidized affordable housing. Targeted industry zones. Each has different negotiation framework.

Structuring?

Fixed PILOT: certain payment amount. Formula PILOT: based on revenue or NOI. Graduated PILOT: phase-in over years. Each has different risk profile. Long PILOT (30+ years) locks in economics; short PILOT (10-15) allows adjustment.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.

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