Business Incentives

New York State supports businesses with a variety of incentives, grants, loans, and special permits. These resources are available through many different state agencies. The following chart is a non-exhaustive list of resources that apply to wine, beer, and spirits industry.

Alcohol and Alcohol-Material Production Incentives
(printable version)
  State Agency Alcohol Specific Type of Assistance Competitive % Cost Supported Funding Limits Available
Farmers' School Property Tax Credit
Provides a credit up to 100 percent of total school property taxes up to 350 acres and 50 percent for excess acreage.
Tax and Finance No Tax Credits No, Open to All Between 50% and 100% of school property taxes None Continuous
Investment Tax Credit
Provides a credit, based on the cost or other basis for Federal tax purposes, for depreciable tangible personal property acquired, constructed, reconstructed, or erected after December 31, 1968 having a useful life of four years or more, located within the State of New York, and used primarily for the production of goods by a variety of processes, including farming, agriculture, horticulture, floriculture, and viticulture.
Tax and Finance No Tax Credits No, Open to All Between 4% and 9%, depending on business type (PIT filer or Corporate Franchise filer) investment base, and R&D status. None Continuous
Excelsior Jobs Program Tax Credits
Provides credits for job creation, investment, research and development, and real property taxes paid.
Empire State Development; Tax and Finance No Tax Credits Yes 6.85% of gross wages, 2% of qualified investments, 10% R&D credit, 50% of assessed property taxes $250 million in aggregate annual State awards when fully effective Continuous
Employment Incentive Credit
Provides a credit, equal to a percentage of investments made, if specified employment growth targets are reached.
Tax and Finance No Tax Credits No, Open to All Between 1.5% and 2.5% of the ITC base, depending on employment growth None Continuous
New Small Business Exemption
Exempts new small businesses from the tax based on allocated business and investment capital. Applies to the first two years of operation of a qualifying business.
Tax and Finance No Tax Exemption No, Open to All Exemption from Capital Base under Article 9A None Continuous
Preferential Tax Rates for Qualifying Small Business Corporations
Provides special rates to corporations that meet the Federal definition of a small business (IRC Section 1244(c)(3)) with ENI less than or equal to $290,000.
Tax and Finance No Tax Rate Reduction No, Open to All Marginal Tax Rate (MTR) is reduced to 6.5% for qualifying businesses with ENI base of $290,000 or less. (MTR) is 7.1% for income over $290,000. None Continuous
Capital Base Liability Cap Reduction for Manufacturers
Lowers the liability limit under the capital base from $1 million to $350,000 for qualified taxpayers.
Tax and Finance No Tax Cap No, Open to All N/A None Continuous
Manufacturer Rate
Taxpayers that are manufacturers are subject to a reduced ENI rate of 6.5 percent.
Tax and Finance   Tax Rate Reduction No, Open to All Eligible taxpayers are subject to a reduced ENI rate of 6.5 percent None Continuous
Beer Production Credit
Provides a tax credit to businesses which are registered distributors under Article 18 of the Tax Law (taxes on alcoholic beverages) and produce 60 million or fewer gallons of beer in New York State in the tax year the credit is claimed.
Tax and Finance No Tax Credits No, Open to All 14 cents per gallon for the first 500,000 gallons produced in New York State, plus 4.5 cents per gallon of production between 500,000 and 15,500,000 gallons. $745,000 per taxpayer (applies at the entity level for S-corporations) Continuous
Capital Improvement Installation Services
An exclusion is allowed for installing property which, when installed, will constitute an additional or capital improvement to real property.
Tax and Finance No Tax Exemption

 

No, Open to All 100% Sales Tax Exemption None Continuous
Fuel, Gas, Electricity, Refrigeration, and Steam Used in Farming and Commercial Horse Boarding
Fuel, gas, electricity, refrigeration, and steam; and gas, electric, refrigeration, and steam service used in the production of tangible personal property, for sale, by farming or in a commercial horse boarding operation are exempt from tax.
Tax and Finance; U.S. Department of Agriculture; NYS No Tax Exemption No, Open to All 100% Sales Tax Exemption None Continuous
Tools and Supplies Used in Production
Receipts from the retail sale of parts with a useful life of one year or less, tools and supplies for use or consumption directly and predominantly in the production of tangible personal property, gas, electricity, refrigeration, or steam for sale by manufacturing, processing, generating, assembling, refining, mining, or extracting are exempt from sales tax.
Tax and Finance No Tax Exemption No, Open to All 100% Sales Tax Exemption None Continuous
Farm Production and Commercial Horse Boarding
Exempt from tax is tangible personal property for use or consumption predominantly in the production, for sale, of tangible personal property by farming or in a commercial horse boarding operation. Also exempt are the services of installing, repairing, maintaining, and servicing tangible personal property and real property used predominantly in farming or in a commercial horse boarding operation.
Tax and Finance No Tax Exemption No, Open to All 100% Sales Tax Exemption None Continuous
Machinery and Equipment Used in Production
Exempt from sales tax are machinery and equipment for use or consumption directly or predominantly in the production of tangible personal property, gas, electricity, refrigeration, or steam for sale by manufacturing, processing, generating, assembling, refining, mining, or extracting.
Tax and Finance No Tax Exemption No, Open to All 100% Sales Tax Exemption None Continuous
Services to Machinery and Equipment Used in Production
The services of installing, repairing, maintaining, or servicing exempt production machinery and equipment or exempt parts, tools, and supplies are exempt.
Tax and Finance No Tax Exemption No, Open to All 100% Sales Tax Exemption None Continuous
Wrapping and Packaging Materials
Cartons, containers, wrapping, and packaging materials and supplies are nontaxable when used by a vendor in packaging or packing tangible personal property for sale and actually transferred by the vendor to the purchaser.
Tax and Finance No Tax Exemption No, Open to All 100% Sales Tax Exemption None Continuous
Wine Used for Wine Tastings
Exempt from tax is the wine that a winery, wine wholesaler, or wine importer furnishes to customers or prospective customers at a wine tasting.
Tax and Finance Yes Tax Exemption No, Open to All 100% Sales Tax Exemption None Continuous
Property Tax Exemptions for Land Used in Agricultural Production
Exemptions are available to orchards and vineyards, substantially reducing property taxes that would otherwise be payable (to local governments); newly planted but non-producing orchard and vineyard acreage may receive the exemption while maturing to production status.
Tax and Finance No Tax Exemption No, Open to All Caps Assessments based on a statutory formula which accounts for the value of the land as farmland vs. other forms of development (residential, commercial) None Continuous
Sales Tax Filing Exemption
Exempts farm wineries, farm, distillers and farm brewers from filing annual returns listing sales made where no sales tax was collected.
Tax and Finance Yes Elimination of filing requirement No, open to all farm wineries, farm distillers and farm brewers N/A None Continuous
Linked Deposit Program
Provides existing businesses with bank loans at reduced interest rates (2-3 percentage points) to improve market access, product development, modernize equipment, expand production, introduce new technologies; transitions ownership, or create/retain jobs.
Empire State Development No Interest Rate Buy down No N/A Maximum $500,000 loan

Maximum lifetime assistance
$2 million
Continuous
Capital Grants and Loans
Assists New York State businesses with capital projects that retain and/or create jobs and increase business activity.
Empire State Development Yes Grant or Loan Subject to credit/project review Varies Varies Continuous
Small Business Ombudsmen
Provides direct one-on-one assistance to small businesses navigating New York State's 140 programs and resources available to small businesses.
Empire State Development No Various No N/A N/A Continuous
Small Business Revolving Loan Fund
The Small Business Revolving Loan Fund (SBRLF) is a $50 million fund designed to create economic activity by providing greater access to capital for main street everyday small businesses.
Empire State Development No Loan Subject to underwriting by participating lenders 50% of the principal amount and no greater than $125,000 Micro-Loans - principal amount less than or equal to $25,000

Regular Loans - principal amount greater than $25,000
Continuous
JDA Loan Eligibility Exploration
ESD and JDA are carefully reviewing the terms and conditions of NYS Constitutional Constraints and exclusions related to NYS financial support for retail entities, in order to identify potential prospects for breweries/distilleries/wineries with a small 'on-site' retail component that is not 'primarily retail'.
Empire State Development No Grant        
State Trade and Export Promotion Program (STEP) (CLOSED)
Grant resources from the US Small Business Administration STEP grant program are being used to promote NYS exports in China, Middle East, Canada, and Africa.
Empire State Development; Small Business Development Center; Dept. Ag & Markets No Grant and Technical Assistance to Exporters No varies limited federal grant program available to SBA eligible firms Continuous
Agricultural Environmental Management
Addresses environmental issues on farms, using progressive tiered planning and a strategic implementation approach, while maintaining economic viability on farms.
NYS Dept. Ag & Markets No Technical Assistance No
Open to All
N/A N/A Continuous, through County Soil & Water Conservation Districts
Agricultural Nonpoint Source Abatement & Control Program
Helps prevent water pollution agricultural activities by through planning and implementation grants to construct or apply on-farm best management practices.
NYS Dept. Ag & Markets No Grants, in conjunction with Aem Yes Up to 87.5% No Limits Annually, through County Soil & Water Conservation Districts
Agriculture Development Program
Increases farm viability through expansion, value added production, diversification, or long term reduction of operating costs.
NYS Dept. Ag & Markets No Grants Yes 0.5 $30,000 Minimum

$500,000
Maximum
Annually
Farmland Protection Implementation Grants
Assists municipalities in purchasing the development rights on viable agricultural lands that are facing significant development pressure and that serve as buffers to significant natural public resources.
NYS Dept. Ag & Markets No Grants Yes Up to 87.5% Towns-$25,000 Counties-$50,000 As funding is available
Farmland Protection Planning Grants
Supports municipalities that develop agricultural and farmland protection plans.
NYS Dept. Ag & Markets No Grants No Towns-75% Counties-50% Towns-$25,000 Counties-$50,000 Continuous
Recharge New York
Statewide low cost electric power program for qualifying business and not-for-profits that agree to create or retain jobs.
New York Power Authority No Low cost power contract Yes N/A N/A As power is available
Expansion & Replacement Power
Low cost electric power program for qualifying business located within 30 mile radius of NYPA’s Niagara hydropower plant. The programs are for businesses adding new electric load, new jobs and making a capital investment.
New York Power Authority No Low cost power contract Yes N/A N/A As power is available
Preservation Power Program
Low cost electric power program for qualifying businesses located within Jefferson, Franklin and St. Lawrence counties. The program is for businesses adding new electric load, new jobs and making a capital investment.
New York Power Authority No Low cost power contract Yes

 

N/A

 

N/A

 

As power is available

 

Solar Energy Incentives
Under the Governor's NY-Sun Initiative, financial incentives are available to building owners who install large-scale PV systems on their property.
NYS Energy Research & Development Authority; Long Island Power Authority No Grants and Contracts Varies Varies Varies Continuous
Wind Energy Incentives
Provides incentives to building owners who install smaller-scale wind turbines on their property.
NYS Energy Research & Development Authority; Long Island Power Authority No Grant Varies Varies Varies Continuous
Anaerobic Digesters
Provides incentives to building owners who install electric generators running on anaerobic digester gas.
NYS Energy Research & Development Authority No Grant Varies Varies Varies Continuous
Cool Roofs and Geothermal Systems
Provides rebates for qualified cool roof and geothermal systems for Long Island building owners.
Long Island Power Authority No Grant Varies Varies Varies Continuous
Energy Efficiency Improvements
Programs available to help businesses reduce their energy consumption, including energy assessments and technical assistance, for customer facilities. Incentives are also available to improve the energy efficiency of industrial processes.
NYS Energy Research & Development Authority; Long Island Power Authority No Grant Varies Varies Varies Continuous
Wine Brand Label Registration
Exempts wine with federal label approval from state brand label registration
State Liquor Authority Yes Registration and fee exemption No, open to all wine manufacturers 100% exemption from fee None Continuous
Beer Brand Label Registration
Exempts beer produced in small batches from fee for state brand label registration
State Liquor Authority Yes Fee exemption No, open to all beer manufacturers 100% exemption from fee None Continuous
Rural Energy for America Program Grant (REAP)
 Provides assistance to agricultural producers and rural small businesses to complete a variety of projects, including renewable energy systems, energy efficiency improvements, renewable energy development, energy audits, and feasibility studies.
US Dept of Agriculture Rural Development

 

No Grant Yes N/A Various subject to Notice of Funding Availability
Rural Business Enterprise Grant (RBEG) Provides grants for rural projects that finance and facilitate development of small and emerging rural businesses, help fund distance learning networks, and help fund employment related adult education programs. US Dept of Agriculture Rural Development No Grant Yes N/A $500,000 subject to Notice of Funding Availability
Value-Added Producer Grants (VAPG)
Assists agricultural producers to enter into value-added activities related to the processing and/or marketing of bio-based value-added products. Generating new products, creating and expanding marketing opportunities, and increasing producer income are the end goals of this program.
US Dept of Agriculture Rural Development No Grant Yes N/A $100,000 for planning $300,000 working capital subject to Notice of Funding Availability
Business & Industry Guaranteed Loan Program
Improve, develop, or finance business, industry, and employment and improve the economic and environmental climate in rural communities. This purpose is achieved by bolstering the existing private credit structure through the guarantee of quality loans.
US Dept of Agriculture Rural Development No Loan Guarantee No N/A $10 million under most circumstances subject to funding availability
Microloan Program Direct
Farm operating loans with a shortened application process and reduced paperwork designed to meet the needs of smaller, non-traditional, and niche type operations
US Dept of Agriculture Farm Service Agency No Loan No N/A $35,000 subject to funding availability
Farm Operating Loans
May be used for normal operating expenses, machinery, equipment, minor real estate repairs or improvements, and refinancing debt.
US Dept of Agriculture Farm Service Agency No Loan No N/A $300,000 Continuous
Farm Ownership Loans
May be used to purchase a farm, construct new farm buildings and/or improve structures, pay closing costs, and promote soil and water conservation and protection.
US Dept of Agriculture Farm Service Agency No Loan No N/A $300,000 subject to Notice of Funding Availability
Guaranteed Farm Loans
Provide lenders (e.g. banks, Farm Credit System institutions, credit unions) with a guarantee of up to 95 percent of the loss of principal and interest on a loan. The FSA guarantee permits lenders to make agricultural credit available to farmers who do not meet the lender’s normal underwriting criteria. FSA guaranteed loans are for both farm ownership and operating purposes.
US Dept of Agriculture Farm Service Agency No Loan Guarantee No N/A $1,302,000 (adjusted annually per inflation) subject to Notice of Funding Availability