INCENTIVES. Orleans Business Incentive/Programs Eligible Users Program Benefits/Eligible Uses For More Information. Empire Zone.

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1 INCENTIVES Orleans County Greater Rochester Enterprise. 100 Chestnut Street. One HSBC Plaza, Suite Rochester New York P F Orleans Business Incentive/s Eligible Users Benefits/Eligible Uses For More Information Zone s New York State Empire Zone Qualifying businesses located in a designated QEZE Sales Tax Exemption - 10-year Empire Zone. exemption from state sales tax on certain purchases of goods/services. QEZE Credit for Real Property - Refundable credit against their business tax equal to a percentage of real property taxes paid. ntives/empire_zones/descriptions_benefits.as p QEZE Tax Reduction Credit - Credit against their tax equal to a percentage of taxes attributable to the zone enterprise. Wage Tax Credit - This credit is available for up to five consecutive years for companies hiring full-time employees in newly created jobs. EZ Investment Tax and Employment Incentives Credit - Tax credit up to 19% of the company's eligible investment. New Business Refund - New state businesses receive a 50% cash refund of unused EZ-WTC and EZ-ITC amounts. Utility Rate Savings - Reduced electric and gas rates. Zone Capital Credit - A 25% tax credit against personal or corporate income taxes. Loans Genesee/Finger Lakes Regional Revolving Loan Fund Manufacturers and service businesses Purchase of machinery and/or equipment, rehabilitation of industrial property, purchase of industrial property and site development and expansion. Also has a companion loan fund that can finance working capital needs. opment.htm Microenterprise Revolving Loan Fund 1 Prospective entrepreneurs of at least 18 years Loans to small businesses are available for of age and a resident of Orleans County, or an working capital, inventory or machines and existing Orleans County small business with equipment up to $30,000. The interest rate for five employees or less. Job creation and low- this type of loan is fixed at 75 percent of to moderate-income level required. prime.

2 New York State Business Development Corporation Loan 1 2 Small- to medium-sized business, women and minority-owned businesses and businesses that credit opportunities are unavailable. NYBDC is a complement to conventional banking, working in partnership with banks to provide term loans, many of which do not meet the requirements for traditional financing. Our goal is to be more creative in our underwriting. In many cases, we include multiple participations, SBA guarantees, flexible amortization and long-term payouts. New York State Job Development Authority Direct Loan Qualified businesses in manufacturing, distribution, warehousing and certain service industries. Loans from $50,000 to $3.5 million to encourage businesses to expand, locate or modernize their facilities in New York State. sinesses/loan_discounts.asp New York State Linked Deposit 1 2 Manufacturers with 500 or fewer employees, service businesses with 100 or fewer employees, Empire Zone businesses and companies located in highly distressed areas with 100 or fewer employees and businesses with a 100 or fewer employees undertaking a plan to increase the business's export abilities. Orleans County Revolving Loan Fund Eligible borrowers include sole proprietorships, partnerships, corporations and any other legally recognized form of business ownership. Loans may also be provided to individuals who will rent or lease assets to an otherwise eligible borrower. The principal business activity which will be primarily impacted by the ORLF financing must be located in Orleans County. Small Business Administration 504 Loan Small Business Administration 7A Loan Guarantee Small Business Administration 7M Micro Loan The program provides a two to three percentage points savings on the prevailing interest rate for "Linked Loans," to make borrowing less expensive. The maximum loan amount of $1,000,000 for four years. ORFL funds may be used for any justifiable business purpose including, but not limited to, fixed assets; current assets, including inventory and receivables; permanent working capital; and refinancing of existing debt where such refinancing is a required element of the project financing and represents a relatively minor portion of the entire project. 1 Small businesses Expansion projects that create/retain jobs, real estate projects or acquisition of machinery and equipment. 1 Small businesses Real estate, equipment, working capital and other business purposes. 1 Small businesses Provides short-term loans of up to $35,000 to small businesses and not-for-profit child-care centers for working capital or the purchase of inventory, supplies, furniture, fixtures, machinery and/or equipment. sinesses/loan_discounts.asp ml Grants Environmental Investment 1 2 Small- to medium-sized businesses Provides funding for capital investments, research, development and demonstration, and technical assistance that produce measurable results in pollution prevention, reuse and recycling. Global Export Market Service 1 2 Small- to medium-sized manufacturer, service or agricultural business with 500 or fewer employees and whose New York State production content is at least 51%. Helps businesses expand through increased export activities. Can provide up to $25,000 in export marketing consultant services for individual companies, and up to $50,000 for groups of companies or industry associations. _Environment/Environmental_Assistance/pollu tion_prevention.asp sinesses/global_markets.asp Industrial Effectiveness 1 2 Small- to medium-sized businesses Assists companies in identifying, developing and implementing improved management and production to enhance efficiency, expand market share and promote job growth. _Environment/industrial_effectiveness.asp

3 New York State's Manufacturing Extension 1 2 Companies are selected based on demonstrated need, company size (companies must be small- or medium-sized), willingness to share costs and contribute resources, involvement of employees, and commitment to self-improvement. Grants of up to $60,000 to private consultants. They will identify, develop and implement improved management and production processes for businesses to expand market share and promote job growth or retention within New York State. _Environment/industrial_effectiveness.asp Small Cities Grant Company must be located in an eligible area and make a capital investment into the organization that will result in the creation or retention of at least 7 new jobs. Expansion projects that create/retain jobs. fault.asp Tax Abatement Sales Leaseback Agreements - Payment In Lieu of Taxes (P.I.L.O.T.) If the company or property qualifies under The following benefits are available to Industrial Development Agency guidelines (ex. companies who enter into a Sales Leaseback ntives/taxes_and_incentives/default.asp manufacturers, back office/administrative service centers). Agreement with an IDA. Real Property Tax Abatement - Abatement of the real property tax for a designated period of time. New York State Sales Tax Exemption - Sales tax exemptions on the purchases and costs associated with creating/retaining jobs. Examples: sales tax associated with contractor costs, business vehicles sales tax. Buy Local Incentive An annual report filed with OEDA/IDA each year verifies the total amount of goods and services purchased. If a total of 20% of the total purchases for the reported year were from Orleans County-based businesses. New York State 485(b) Commercial and industrial facilities constructed or reconstructed at a cost of more than $10,000. Mortgage Recording Tax Exemption - Local mortgage recording tax is waived. The company will be eligible for further reductions in their PILOT payments. ves.html Partial exemption from the real property tax levied by counties, cities, towns, villages ves.html and/or school districts. The maximum exemption amounts to 50% of any increase in value in the first year following completion and declines by five percentage points in each of the succeeding 9 years. Tax Credits New Market Tax Credit Areas include, the Village of Albion, the Village The New Market Tax Credit is a federal tax of Medina and the Town of Yates. credit of 39% for new investment that is available in three areas of the county. New York State Investment Tax Credit Companies that create new jobs and make new investments in production property and equipment. New York State Research and Development Tax Credit New or expanding tech companies that make investments in research and development facilities that create new jobs. The investment may qualify the business to receive up to a 10% tax credit on their investments. Investments in research and development facilities are eligible for a 9% corporate tax credit. Additional credits are available to encourage the creation and expansion of emerging technology businesses, including a three-year job creation credit of $1,000 per employee and a capital credit for investments in emerging technologies. ves.html ntives/taxes_and_incentives/default.asp ntives/taxes_and_incentives/default.asp Other s

4 Microenterprise Assistance 1 MAP targets low- to moderate-income entrepreneurs interested in starting and owning their own business. Owners of existing microenterprises (employing 5 or fewer employees) are also eligible if they wish to expand their business and provide employment opportunities for low- to moderate-income individuals. This program is intended to provide eligible participants with free training and technical assistance and access to low interest loans. 1 Eligible MAP business owners Entrepreneurship Training - This includes a 12-week training course which covers many of the aspects of operating a small business including: taxes, legal/business law, budgeting/financial statements/recordkeeping, computer applications and employee issues. Energy Building Redevelopment Companies interested in redeveloping brownfields and/or abandoned buildings with preference to companies located in Renewal Communities or Empire Zones. 1 Eligible MAP business owners Technical Assistance and Business Plan Development - Technical consultants assist in the development of a business plan which will: outline the vision of the entrepreneur/owner and state the business concept, identify the market, detail the production and employment plan and identify financial needs and goals. Grants to fund utility-related infrastructure improvements necessary for the redevelopment of brownfields and abandoned buildings. s/ecodevprgincentives#3 Capital Investment Incentive Business attraction and expansion projects and involves an existing or prospective Grants to fund improvements for electric infrastructure or certain business projects that customer with a monthly peak electric demand involve major capital investment. of at least 300 kilowatts. Economic Development through Greater Energy Efficiency (EDGE) New York State businesses EDGE provides financial and technical support for detailed engineering studies of manufacturing operations; and financial assistance for the demonstration of innovative energy-efficient process technology. s/ecodevprgincentives#6 New York Power Authority Hydro Allocation Customers of this program must be located within 30 miles of the Niagara project. This program is available only in Western Orleans County. New York State Energy $mart Loan Fund New York State businesses that undertake pre-qualified cost-effective investments that reduce energy use. Power Naturally Any business or facility assessed with a Systems Benefit Charge (RG&E, NYSEG, NIMO distribution territories). Small Commercial Energy Audit Any facility assessed with a Systems Benefit Charge with less than $100,000 in annual electric bills is eligible for an energy audit. The Power Authority sells large amounts of electricity generated at its Niagara Power Project to Western New York businesses. This hydropower is classified as either replacement power or expansion power, and is delivered through an arrangement with the Niagara Mohawk Power Corp. Investments may qualify for a 4% reduction in a financial institution's loan rate from New York State for the life of the loan. Installation of 50kW or smaller end-use solar or wind energy system. Must be grid connected. $4.00/watt incentive for solar systems. NYSERDA provides financial assistance for the cost of an energy audit and matching funds for implementation of audit recommendations

5 Smart Equipment Choices Any business or facility assessed with a Systems Benefit Charge (RG&E, NYSEG, NIMO distribution territories). University-Industry Energy Research Projects that combine the resources of the university with those of the industry to find energy-efficient solutions to industrial problems. Utility Infrastructure Investment Projects may involve an existing or prospective customer with a monthly peak electric demand of at least 100 kilowatts. To be eligible, total project cost must also involve capital investment of at least $1 million. NYSERDA rebates on approved energy efficient equipment such as lighting, motors, geothermal heat pumps and HVAC refrigeration. Funding to reduce risks and operating costs, increased opportunities to develop and use innovative technologies, and improved access to university resources and specialized equipment. Provide funding for new electricity facilities to assist in the development of certain sites or buildings. These sites represent the service area's best potential industrial development opportunities. Primary focus is on sites which are: state-designated as Shovel Ready, located in an Empire Zone, part of the City of Rochester Renewal Community, or included in RG&E's own Prime Sites. Other sites will be considered based on economic impact to the community. sp s/ecodevprgincentives#1 Workforce Development New York State Training Grants New York State offers assistance to small and large businesses attempting to meet the challenges of creating new products, entering new markets and improving production. Funding available for up to 50 percent of any training project, training in new technologies, skills or work processes, training in a classroom setting and/or on-the-job, funding for consortia projects, and funding for small business training projects aphics/training_assistance.asp