More and more businesses are investing in Niagara due to the American border proximity, the Welland Canal and access to the GTA consumer market. The residential real estate market has also proven that Niagara is becoming increasingly popular as place of primary residency; bringing more potential employees, consumers and investors.
As a means of continuing to encourage this influx of industry to the Niagara Region, all levels of government are offering unique and valuable business incentives.
Niagara Gateway Community Improvement Plan
The Niagara Gateway CIP offers two programs that can save industrial companies significant amounts of money. The CIP, established in 2011, provides both the Tax Increment Based Grant Program and the Regional Development Charge Grant Program. The latter can provide businesses with exceptional project relief of up to $1.5 million from development charges levied by the Niagara Region. The former provides a rebate on your tax rate for a percentage of the post-project values for up to 10 years; this program is based on the project’s environmental design and economic performance.
Municipal Property Tax Incentives
Municipalities such as Welland, St. Catharines and Niagara Falls understand the benefit of attracting industry to their cities and have provided property tax incentives to help encourage this. While each municipality offers different specific incentives, generally speaking these are development charge relief credits for restoring brownfields and waiving of certain by-law restrictions if the project provides significant merit.
Foreign Trade Zone
The Foreign Trade Zone or FTZ is a Federal program that provides tax and tariff relief for industry that does business internationally. For Niagara, this is significant due to its proximity and regular trade with the United States. For industry looking to sell or transport goods, the FTZ benefits can be significant and long-term. Read more about the FTZ and what it means for Niagara here.
Businesses like General Electric and Northern Gold Foods have taken advantage of these incentives in order to establish themselves and invest in Niagara. If you’re looking for industrial real estate, working with an experienced, local commercial broker in Niagara can help you find all the appropriate incentives and maximize your company's savings.