Financial Incentives

NOMO CONSULTING, LLC | BY NANCY PROYECT RIDER

Workforce issues, ever-expanding governmental regulations, new technology, market changes, and other challenges are expensive and can be difficult. In the spirit of Job, government will giveth as well as taketh away, and since you’re paying taxes, why not try to recoup some of that hard-earned money to help your business grow.

If you’re willing to deal with a bit of paperwork, grant funding and incentives are available, especially if the changes you’re thinking of will lead to new jobs. Keep in mind that most, if not all grants are reimbursable, so you’ll have to layout cash and then the State or federal government will pay you back.

Do you need to upgrade your equipment, purchase new machinery, or expand operations?

NYS has several funding opportunities. Most need to be requested through a Consolidated Funding Application. It isn’t super difficult to complete this application, but it’s detailed, and you’ll need to have a strong plan in place before you request funding. Applications are reviewed quarterly.

Capital grant funding is available for projects that will create or retain jobs, prevent, reduce, or eliminate unemployment and underemployment, and/or increase business. Land acquisition, equipment, machinery, facility upgrades, furniture, fixtures, and more are included in this pot of money. The State will fund up to 20% of the total project cost and the minimum request is $100,000.

There’s also a lesser-known program, the Small Manufacturers Modernization Grant, designed to support existing smaller companies investing in capital projects that will improve competitiveness or productivity through modernization and integration of advanced technology. The minimum grant request is $50,000. Applicants have had to be operational in New York for at least 10 years, and must employ between 5 and 99 people (FTEs).

New York State also offers the Excelsior Jobs Program, which is designed for firms that create jobs or make significant capital investments. Companies in this program may qualify for several different refundable tax credits related to employment overall, investment, research and development, real property tax, childcare services, and green projects. Businesses can claim the credits over a benefit period of up to 10 years as long as you meet certain criteria.

Are your workers in need of training to run new equipment or to keep up with regulations?

Empire State Development opened new grants in 2022 under the new Office of Strategic Workforce Development focused on advanced manufacturing, cleantech, biotech, life sciences and other high-growth target industries. Grant awards begin at $100,000 with NYS providing up to 50% of the total project cost. There’s funding for capital, instruction, technology, and more. Keep in mind, everything must be used to train workers and individual business don’t apply for the funding. Instead, companies are collaborating with organizations like the Council of Industry and/or local colleges to put together meaningful programs that will expand services.

Similarly, the US Economic Development Administration has grants available for collaborations that support regional workforce training to train and place workers in good jobs.

The Council of Industry and its Hudson Valley Manufacturing Workforce Center have successful apprenticeship programs, discounts, incentives, and other educational and training programs to help you succeed. Be sure to reach out to ensure you are accessing all the benefits your membership offers.

Are there steps you can take to become more cost-efficient, energy efficient but don’t have the wherewithal to begin?

ReCharge New York is a newer program designed to retain or create jobs through allocations of lower cost electricity to businesses. The majority of the remaining power in the program will be allocated to businesses that plan to expand operations in the state or are looking to relocate to New York State, so if you’ve got an expansion planned, call ReCharge New York soon at 888-562-7697 or email: Recharge.NewYork@nypa.gov.

The New York State Energy Research and Development Authority (NYSERDA) has most of the State funding to help with energy efficiency. A sampling of programs, grants, and credits are below. You can also find out about other opportunities by visiting: https://www.nyserda.ny.gov/All-Programs#category=businesses-large,businesses-small. Qualifying for these programs and figuring out how to apply can be a little frustrating but not impossible. The staff at NYSERDA can be very helpful in finding the right program, assisting with applications, and finding local contractors that are NYSERDA certified.

The NYSERDA Flexible Technical Assistance Program supports New York State commercial, industrial, and multifamily customers who pay into the Systems Benefit Charge by providing a cost-share for credible technical assistance services. These services encompass a wide range of activities to help customers make informed clean energy investment and sustainability decisions.

NYSERDA provides cash incentives and/or financing for the installation by contractors and builders of new grid-connected electric photovoltaic (PV) systems for nonresidential sites in upstate and PSEG Long Island regions that are up to 750kW, and for nonresidential sites in the Con Ed region that are up to 7.5MW. Incentives are granted on a first-come, first-served basis, and PV project applications will be accepted through December 31, 2030, or until funds are fully committed, whichever comes first.

The Strategic Energy Management (SEM) program supports businesses interested in adopting SEM practices by offering two options: One program is a remote-learning program that features one-on-one technical support and guidance to facilitate the adoption of SEM. It helps identify low- and no-cost ways to reduce your energy consumption in the short term with strategies for maintaining the cost-reduction business practices in the long term. Another program leverages on-site staff supported remotely by skilled energy auditors to identify energy saving opportunities, prioritize findings, and calculate the potential savings. The second option is only available to 25 facilities so it’s competitive! Applications are accepted on a first-come, first-served basis.

The New York Truck Voucher Incentive Program (NYTVIP) helps make it easier for fleets to adopt clean vehicle technologies while removing the oldest and dirtiest diesel engines from roadways. NYTVIP provides discounts to fleets across the state that purchase or lease all-electric, hydrogen fuel cell electric, plug-in hybrid electric, conventional hybrid electric, compressed natural gas, or propane medium- and heavy-duty vehicles (weight class 3 through 8) and scrap a similar older diesel vehicle that is part of your fleet.

Would you like to research a new product or process?

FuzeHub’s Jeff Lawrence Innovation Fund is designed to encourage collaboration between not-for-profit organizations and small to medium-sized manufacturing companies in New York State. The fund supports activities that spur technology development and commercialization across New York State. The fund grants about $1 million annually, split between a number of projects so it’s highly competitive.

The U.S. Economic Development Administration will regularly provide grants for regional collaborations in research and development, whether it’s through Economic Adjustment Assistance, Strategy Development, or other programs. Similar to its workforce development programs, however, private businesses are usually ineligible to receive grant funding directly – nonprofit organizations, institutes of higher education, and associations like the Council of Industry develop programs in which companies can participate.

The U.S. National Science Foundation (NSF) provides direct funding for research and development through grants, including the NSF Convergence Accelerator, and the NSF’s Regional Innovation Engines Program. It also occasionally contracts with private companies to conduct research. For more information, visit https://new.nsf.gov/funding/industry#funding-programs-for-industry-c3d.

State grant applications are time-consuming and detailed; federal grant applications are even more so. Both, however, can help you leverage your own investment, provide you with technical assistance, and elevate your company to new levels. Plan thoroughly, make sure your financial statements and other paperwork is in order, seek assistance when you need it and apply away!

You can do it!

About the Author: Nancy Proyect Rider served as an executive director of Hudson Valley nonprofit organizations for over two decades. Passionate about contributing to quality of life in her community, she is the owner of NoMo Consulting, a company focused on helping area businesses, non profits, and local governments grow through fund development, strategic planning, and communications.