investbn-logo
Search
Close this search box.
Get Started
Advantages

Incentives

The Incentives for Success are plentiful in Buffalo Niagara.

The region is attractive to businesses looking to relocate because of the low cost of doing business here, affordable real estate and competitive salaries. Tax incentives offered by state and local governments and utilities offer a competitive edge, reducing costs for companies looking to relocate to Buffalo Niagara.

No state corporate income tax for manufacturing companies

No inventory/real personal property tax

No sales tax on production or R&D equipment

Business Incentives

Tailored Support for Your Success

The business incentives included here focus on financial assistance, infrastructure development grants, tax credits and exemptions, customized training, and technical support programs. The eligibility requirements differ from program to program, so please contact us for details and to discuss programs that may be suited to your business project. That way your time can be committed to building great products and finding new customers.

Pro-Business Programs & Incentives

Tax Programs

Invest Buffalo Niagara connects businesses with local organizations to access available training funds, locate training resources, and link companies with qualified job seekers.

 
On-the-Job Training (OJT)

Helps businesses upgrade the skills of newly hired workers by providing training grants that can cover up to 90% of the total costs for Workforce Investment Board (WIB) approved on-the-job training, depending on the size of the business. Eligible workers must be employed full time (35+ hours per week) and earn more than $10/hour.

Customized Training

Designed to meet the special requirements of an employer for up to 50% of the total costs of a Workforce Investment Board (WIB) approved training course. Eligible companies must continue to employ the individual upon training completion. The employee must be newly hired or make less than $25/hour and must receive a skill assessment indicating that training is necessary to obtain or retain employment.

PIVOT Program

A unique wage subsidy program that provides the businesses with partnership opportunities.  The Erie County Department of Social Services staff matches employable temporary assistance for under-employed clients with companies looking to fill existing positions. All PIVOT candidates are pre-screened for job capability, and Erie County subsidizes 100% of PIVOT candidate wages for six months during training.

Energy Programs

Low-Cost Hydropower (NYPA)

Low-cost hydropower has been reserved by New York State law for companies planning to build or expand in the Buffalo Niagara region. The program offers renewable hydroelectric power at an extremely affordable cost. Allocations depend on project size and scope, in particular, new job creation. This program is administered by the New York Power Authority (NYPA) and is allocated through a competitive application process. An eligible project must be physically located in the state of NY and within a 30-mile radius of the NYPA Niagara Power Project in Lewiston.

 

Reduced Rates for Excelsior companies (electric and natural gas)

National Grid and NYSEG (electric) and National Fuel (natural gas) provide reduced utility rates for economic development projects accepted into the Excelsior Jobs Program.  Existing customers must increase demand, while new customers must add new load. Qualified projects are eligible for discounted rates for up to a ten-year period.

 

Utility Infrastructure Programs

Electric and natural gas utilities in Buffalo Niagara provide targeted programs for companies look to expand their business into the region.  Programs can alleviate costs associated with infrastructure improvements, capital investments, and brownfield redevelopment, and other development costs.

 

NYSERDA Programs

The New York State Energy Research and Development Authority (NYSERDA) offers a wide range of programs to help residents and businesses across New York State become more energy efficient and use more renewable energy. These programs give New Yorkers access to funding, technical expertise, and information about proven clean-energy technologies and processes that reduce energy waste, save money, and protect the environment.

 

RE-CHARGE NY

ReCharge NY is an economic development program designed to retain and create jobs by allocating low-cost power to businesses and non-profit organizations via a competitive process governed by the New York State Economic Development Power Allocation Board (EDPAB) and NYPA’s Board of Trustees. Watch our recent webinar and then download PDF with additional details. Call us to further discuss.

 

Municipal Power Districts 

Certain municipalities in the Buffalo Niagara region own and operate their own public utility power generation infrastructure, offering lower power rates to its commercial & industrial power users.

Grants

In addition to potentially applicable federal or local-entity opportunities, the Buffalo Niagara region offers a variety of grants for companies that will be making significant capital investment and adding or retaining employment. 

Grant assistance is available for new facility construction, site and infrastructure work, equipment purchases, energy performance improvement, environmental performance improvements, working capital and lease costs.

 

 

Economic Development Fund (ESD)

New York offers financial incentives to manufacturers, service providers, warehousers and distributors & research and development companies to assist with site location, new facility construction, existing facility expansion or modernizing existing operations — all of which can be tailored to the size and scope of your project. Incentive may also assist with your working capital, employee training, expanding export opportunities and productivity enhancement.

 

 

Power Proceeds Grant Program (NYPA)

Support the growth of businesses that lead to the creation or maintenance of jobs and tax revenues in NYS. Eligible projects include, workforce development; energy-related projects, programs and services; capital investments in buildings, equipment, and associated infrastructure owned by an eligible applicant for fund benefits; transportation projects under state or federally approved plans; the acquisition of land needed for infrastructure; research and development where the results of such research and development will directly benefit NYS. An eligible project must be physically located in the state of NY and within a 30-mile radius of the NYPA Niagara Power Project in Lewiston.

 

 

Centers for Advanced Technology (CAT) grants

Non-dilutive matching grant monies available to companies that engage with a college/university partner on a research & development project that facilitates commercialization of a technology and brings it closer to market. There are 15 CATs across New York State, with two in the Buffalo Niagara region: the University at Buffalo (UB) CAT in Biomedical & Bioengineering; and the Center for Advanced Ceramic Technology at Alfred University. Companies located in New York State can access CAT funds from any of the 15 CATs, regardless of geographic proximity.

 

 

SBIR/STTR Grants

Funding is available from certain federal governmental agencies via the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. Through a competitive awards-based program, SBIR enables small businesses to explore their technological potential and provides the incentive to profit from its commercialization.  Central to the STTR program is expansion of the public/private sector partnership to include the joint venture opportunities for small businesses. The unique feature of the STTR program is the requirement for the small business to formally collaborate with a research institution in Phase I and Phase II. STTR’s most important role is to bridge the gap between performance of basic science and commercialization of resulting innovations.

Loans

There are numerous lucrative loan programs available either from a municipality, industrial development agency, state, or federal government.

 
IDA Loan Programs

Regional Industrial Development Agencies (IDAs) have programs to provide additional lending capital in conjunction with traditional bank financing. In most circumstances, the IDA (or its affiliated lending entity) will take a junior position with a fixed interest rate, lowering the borrower’s effective interest rate.

 

Job Development Authority (JDA) loans

Provides direct loans for the growth of businesses within New York State by assisting in financing a portion of the cost of acquiring and renovating existing manufacturing, distribution, warehousing and certain service buildings or constructing new buildings (“real estate” projects) or for purchasing machinery and equipment (“M&E” projects).  A JDA real estate loan is normally a second mortgage loan, subordinate to a first-mortgage loan provided by a bank; M&E Loans are secured by a first lien, co-equal with the bank’s lien, on the M&E being financed. Typical financing structure: 50% bank loan, 40% JDA loan and 10% borrower equity.

 

Small Business Administration (SBA) 504 and 7a programs

The SBA 504 program is a fixed asset, economic development program designed to promote growth and job creation for small businesses. The spirit of the 504 program is to provide access to low down payment financing so that small businesses can preserve cash to operate their business. The SBA 7(a) Loan Program helps expand access to capital to small businesses operating for-profit. Under the 7(a) program, eligible small business loans made by approved SBA lenders are guaranteed up to 85% by the SBA. This loan guarantee helps entice lenders to make loans to small businesses who would not qualify for conventional financing. Typically a lender might apply for an SBA 7(a) loan guarantee to mitigate a shortfall in collateral. In New York State, these programs are managed and administered by New York Business Development Corporation (NYBDC).

 

New Market Tax Credits financing

Interest-only loans at below-market rates, a portion of which may be forgiven upon maturity, used for the purpose of subsidizing long-term capital investment in order to foster job creation and community development in designated low-income communities throughout New York State. Preference will be given to borrowers with: development costs between $5 million and $25 million and/or projects that are likely to create new jobs and/or retained jobs at risk of being lost, with preferences as follows.

Trade/Export Assistance

Foreign Trade Zones (FTZ)

Foreign Trade Zones were created by the US government to facilitate international trade and increase the global competitiveness of U.S. based companies. FTZs are approved locations that allow certain types of merchandise to be imported, assembled with other components, repackaged and/or exported without going through formal customs procedures. These zones provide the ability to defer, reduce or eliminate duty charges when the goods enter U.S. commerce or are exported outside the U.S. Buffalo Niagara is home to two of the largest FTZs in North America.

 

Global NY

Global NY is a new initiative launched in 2015 by Governor Andrew M. Cuomo that offers one stop shopping to both foreign businesses looking to invest in New York and to New York State-based businesses who want to export globally.

 

US Commercial Service

Assists companies in getting started with exporting or increasing sales to new global markets. Services include trade counseling, market intelligence, business match making, and commercial diplomacy. They can also assist with trade finance and insurance strategies.

 

Venture & Equity Capital

43North

The world’s largest business idea competition, located in Buffalo, gives out $5 million in cash prizes each year to some of the best and brightest entrepreneurs and startups from around the globe. Winners agree to locate here for a minimum of 12 months and are offered incubator space, which is located in the heart of the Buffalo Niagara Medical Campus. 43North co-locates with Z80 Labs, an internet startup incubator, and are adjacent to the dig co-working space, creating an entrepreneurial cluster.

 

Launch NY

The region’s Venture Development Organization (VDO) providing proof of concept funding and support to high-growth potential early-stage companies the following industries: advanced manufacturing, consumer goods & services, mobile technology, clean energy, medical devices, IT and web technology, nanotechnology, and life sciences & pharmaceuticals. Launch NY provides entrepreneurs experienced mentoring using best practice processes and connections to specialized resources both in and beyond the Upstate NY ecosystem.

 

Innovate NY

Business equity fund with up to $45 million to support innovation, job creation, and high growth entrepreneurship throughout the state. All contracted investment funds are required to secure at least a 2:1 match from private sources on its aggregate portfolio at the time of investment. Innovate NY funding may not exceed $500,000 per investment or $750,000 in the case of any inpidual biotechnology related company.

 

NYS Innovation Venture Capital Fund

Seed stage and early stage venture capital fund with up to $50 million to support and attract new high-growth businesses. The NYSIVC Fund will provide critical funding to promote the commercialization of new technologies, incentivize economic growth and encourage job creation across NY State through two separate segments: The Technology Commercialization Segment or the Seed and Early Stage Co-Investment Segment. All investments by the NYSIVC Fund require at least a 1:1 match from private sources at the time of investment.

Workforce Development

Invest Buffalo Niagara connects businesses with local organizations to access available training funds, locate training resources, and link companies with qualified job seekers.

 
On-the-Job Training (OJT)

Helps businesses upgrade the skills of newly hired workers by providing training grants that can cover up to 90% of the total costs for Workforce Investment Board (WIB) approved on-the-job training, depending on the size of the business. Eligible workers must be employed full time (35+ hours per week) and earn more than $10/hour.

 

Customized Training

Designed to meet the special requirements of an employer for up to 50% of the total costs of a Workforce Investment Board (WIB) approved training course. Eligible companies must continue to employ the individual upon training completion. The employee must be newly hired or make less than $25/hour and must receive a skill assessment indicating that training is necessary to obtain or retain employment.

 

PIVOT Program

A unique wage subsidy program that provides the businesses with partnership opportunities.  The Erie County Department of Social Services staff matches employable temporary assistance for under-employed clients with companies looking to fill existing positions. All PIVOT candidates are pre-screened for job capability, and Erie County subsidizes 100% of PIVOT candidate wages for six months during training.

Incentive Coordination

Accelerating Growth Opportunities

Invest Buffalo Niagara assists with incentive program identification and coordination across various local, regional, and statewide economic development organizations.  For most agencies, a time frame of 45-60 days from the receipt of a fully completed, successfully submitted application to final approval is the norm (outside of any external regulatory reviews).

If you are a customer of National Grid or NYSEG, there are matching grants for encouraging improvement projects.

Download Incentives Guide
Wins & Success Stories

See Buffalo Niagara Success Stories

Wins & Success Stories

Success Story

PatCom Medical

PatCom Medical is an early-stage Canadian medical device company focused on improving patient comfort during evaluation and treatment of communication and swallowing disorders. PatCom’s small diameter endoscopes, advanced light and camera technology, and patented Esophageal Introducer allow for easy intubation and more accurate testing, including Fiberoptic Endoscopic Evaluation of Swallowing (FEES), Videostroboscopy, and Reflux testing.

With 80% of the company’s sales in the U.S., having a physical presence in the States became a top priority. The company was looking for a region with a strong life and health sciences ecosystem, specifically within minimally invasive surgery innovation, as well as potential for academic partnerships.

PatCom Medical is an early-stage Canadian medical device company focused on improving patient comfort during evaluation and treatment of communication and swallowing disorders.
Read More

Success Story

Worksport

Worksport is a Canadian headquartered, publicly traded company that manufactures tonneau covers for trucks. The company was manufacturing their products overseas but was looking for a site in North America to onshore production. Worksport had a list of requirements they were searching for throughout the process including a suitable building preferably near their Canadian headquarters, access to cross border expertise, and government incentives to make the project possible.

Worksport is a Canadian headquartered, publicly traded company that manufactures tonneau covers for trucks. The company was manufacturing their products overseas but was looking for a site in North America to onshore production.
Read More

Success Story

Pride Pak

Canadian-headquartered Pride Pak processes fresh vegetables, making ready-made salads in a bag and chopped vegetables. The company also sources raw vegetables from both the US and Canada. Pride Pak was started in 1984 and has their main office in Mississauga with another facility in New Foundland. They currently employ over 200 people and sell to grocery retailers and into the restaurant industry.

With growing sales in the US, Steven Karr, CEO sought a new facility across the border to grow his business. In 2014, Pride Pak reached out to multiple regions within New York State to locate their new facility.

Canadian-headquartered Pride Pak processes fresh vegetables, making ready-made salads in a bag and chopped vegetables. The company also sources raw vegetables from both the US and Canada.
Read More

Success Story

Sparq

Sparq (formally Rural Sourcing) provides outsourced software development services to build, deploy and optimize critical online applications. The company operates eight sites through the United States and was seeking additional market expansion to fulfill current business obligations and capture additional market growth opportunities. The company was interested in investigating a potential region’s IT ecosystem, workforce and higher education, operating costs, and quality of life benefits.

Sparq (formally Rural Sourcing) provides outsourced software development services to build, deploy and optimize critical online applications. The company operates eight sites through the United States and was seeking additional market expansion to fulfill current business obligations and capture additional market growth opportunities.
Read More
Grow your Business in Buffalo Niagara.

Get started and discover why Buffalo Niagara is the right choice.

Get Started
Why Buffalo Niagara?
investbn-logo
Facebook Twitter Instagram Linkedin
Get Started
investbn-logo
Facebook Twitter Instagram Linkedin
Get Started

Contact

Quick Links

Resources

Stay In Touch

Subscribe to our Newsletter

©2024 Invest Buffalo Niagara. All right reserved. | Privacy Policy & Terms | Created by

Grow Your Business

Industries

Advantages

Properties

About Us

Media

Grow Your Business
Get Started

Subscribe to our Newsletter!