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) |
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| State Agency | Alcohol Specific | Type of Assistance | Competitive | % Cost Supported | Funding Limits | Available | |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 | |
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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 |
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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
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No, Open to All | 100% Sales Tax Exemption | None | Continuous |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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Manufacturing Assistance Program This program assists New York State manufacturers invest in capital projects that significantly improve production, productivity and competitiveness. Projects may also include Industrial Effectiveness consulting and or worker skills training. |
Empire State Development | Yes | Grant | Subject to credit/project review | Varies | 1000000 | Continuous |
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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 |
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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 |
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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 | ||||
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State Trade and Export Promotion Program (STEP) 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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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
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N/A
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N/A
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As power is available
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| 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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
