Financial Incentives - Niagara County Industrial Development Agency
The Niagara County Industrial Development Agency utilizes a variety of financing, tax incentive and job training programs to induce economic growth. Many of these programs can be employed individually to meet a specific need or assembled to form a comprehensive development package. Contact the NCIDA to schedule a personal review of your project.
Funds
Niagara County Revolving Loan Fund (RLF)
- Direct loan program designed to promote economic development by providing “gap” financing for qualified projects.
- Loan amount is based on number of jobs created and/or retained.
- Will provide up to one third (1/3) of total project costs with a maximum RLF amount of $200,000.
- Loan proceeds can be used for working capital or fixed asset financing and bear a below-market rate.
- Loan terms are 3 to15 years based on the use of the proceeds.
- Most firms engaged in manufacturing, R&D and business services are eligible.
Niagara Economic Development Fund (NEDF)
- Can provide 30% of total project costs or $250,000 (whichever is less.)
- Funds the fixed asset portion of manufacturing, assembly or wholesale distribution projects.
- Loan amount based on jobs created/retained.
- Below market interest rate, with terms of seven years or less for machinery and equipment and 15 years or less for real estate.
For additional information on development opportunities in Niagara County, please contact:
Niagara County Center for Economic Development at (716)278-8760 or visit www.nccedev.com.
Industrial Revenue Bonds
- Funds are provided by commercial banks or private investors.
- Best suited to larger, financially strong industrial, manufacturing, agri-business, corporate office and R&D projects.
- Proceeds are used to finance fixed assets including real estate and building acquisition, construction or renovation and acquisition of machinery and equipment.
- Two forms of bond financing are “tax exempt” for industrial projects and “taxable” for most others.
- Benefits of both are the ability to finance 100% of the fixed assets, exemption from sales tax on construction materials, equipment, furniture and fixtures and real property tax abatements.
- The added advantage of financing “manufacturing” projects of less than $10 million with tax exempt bonds is the preferred interest rates available to qualified projects.
It is necessary to review the proposed project with the Agency to determine eligibility and benefits.
Leasing
- An alternative to conventional Industrial Revenue Bond financing which can also assist industrial, distribution and R&D projects.
- Ideally suited to real estate/facility projects.
- Places title to the project to the Agency and the facility is leased back to the tenant/company.
- As with an Industrial Revenue Bond project, a Payment-in-Lieu of Tax (PILOT) agreement is utilized to provide real property tax abatements and sales tax exemptions.
- This type of project should also be reviewed with the Agency to determine eligibility and benefits.
