Commercial and industrial development incentives

Financial programs to help businesses build, expand and create jobs in Niagara.

Gateway Community Improvement Plan - Development Charges Grant

GRANT

An additional Regional grant equal to the Regional development charges paid, for Gateway Community Improvement Plan projects that meet the scoring criteria.

  • Approved for a matching local development charge grant, or the local municipality confirms it will not levy development charges for the project
  • Not a tenanted building
  • Regional development charges must be paid at time of building permit issuance
  • Any other grants received may be deducted before the final calculation

Gateway Community Improvement Plan - Tax Increment Grant

GRANT

A Regional grant matching the local municipality's tax increment grant for new or expanding businesses locating in Gateway Community Improvement Plan areas.

  • Available in Fort Erie, Niagara Falls, Port Colborne, Thorold, Welland
  • New businesses from outside Niagara or expansions adding new jobs quality

  • New businesses relocating from outside Niagara or existing businesses expanding with net new full-time positions and increased assessment value
  • Approved for a Gateway Tax Increment Grant by the local municipality within three months of applying to Niagara Region
  • Classified as an employment use under the local Official Plan
  • No environmental remediation required on the property
  • Not in arrears of any property taxes or charges

For expansion projects: must show a minimum 25 per cent increase in full-time equivalent positions over current levels, and must not be currently receiving a Gateway Community Improvement Plan grant.

Applications are managed through Niagara Economic Development. Before applying:

  • Book a pre-application meeting with both local and Regional Gateway staff
  • Do not begin works or receive a building permit before submitting your application

Your application will need to include a title search, corporate profile, status of all required planning approvals, and a copy of the local municipality's project and grant approval.

Apply through Niagara Economic Development.

Hotel and Motel Grant

GRANT

A grant for new hotel and motel developments based on the square footage of lodging space. The grant rate decreases each year, so earlier applications receive more funding. Available for permits issued Jan. 1, 2025 – Dec. 31, 2031 only.

  • Total program cap: $1.5 million
  • Per-project cap: $375,000
  • Apply within 30 days of paying development charges
  • 2026 rate: $2.35 / sq. ft.

To be eligible, the development must:

  • Meet the definition of a hotel or motel — a commercial lodging establishment open to the public. Short-term rental units listed on platforms like Airbnb or Vrbo do not qualify.
  • Have Regional development charges payable on or after Jan. 1, 2025
  • Not have previously received a Hotel and Motel Grant from Niagara Region
  • Not be in property tax arrears

Year of building permit Grant rate per square foot
2025 $2.74
2026 $2.35
2027 $1.96
2028 $1.57
2029 $1.17
2030 $0.78
2031 $0.39
2032 $0.00

Applications can only be submitted once all applicable development charges have been paid for a development, and Niagara Region has confirmed payment.

The municipality and Niagara Region collect development charges on different timelines.

The developer is responsible for:

  • Resolving delays with the municipality
  • Providing Niagara Region with proof of payment for development charges on time so the application can be submitted

Square footage used for other commercial purposes — including restaurants, theatres and retail space — does not qualify for a grant under this program. These areas are subject to the full commercial Regional development charges rate under By-law 2022-71 at the time of first building permit issuance.

Your application must include:

  • Completed application form
  • Confirmation of Regional development charges payment (such as a municipal receipt)
  • Supplier registration number to receive payment from Niagara Region
  • Signed declaration that the property is not in property tax arrears

Apply for a Hotel and Motel Grant.

Industrial Use Development Charges Grant

GRANT

A grant of up to 100 per cent of Regional development charges for new or expanded industrial facilities in Niagara. Contact Regional staff early in your planning process.

This grant has reached the $1 million annual funding limit for 2026 and is no longer accepting applications.

  • Maximum grant: 100% of Regional development charges
  • Annual cap: $1 million (all applicants)
  • Apply before building permit or within 90 days after

To qualify, your development must:

  • Meet Niagara Region's definition of industrial use under By-Law 2022-71 (manufacturing, processing, storage, distribution, or related office and administrative uses)
  • Demonstrate positive economic impact for Niagara

Land, buildings or structures used for:

  • Manufacturing, producing or processing goods for a commercial purpose
  • Storing or distributing goods that were manufactured or processed on site
  • Research or development in connection with manufacturing
  • Retail sales by a manufacturer or processor at the same site where production occurs
  • Office or administrative uses directly connected to these activities

Submit an application online. You'll need to provide:

  • Property information and assessment roll number
  • Owner and applicant contact details
  • Building type and square footage
  • Description of how the development meets the industrial use definition
  • Economic impact details: total investment value, new jobs created and jobs retained

Apply for an Industrial Use Development Charges Grant.

Regional Development Charges Deferral

DEFERRAL

Some eligible developments can defer payment of Regional development charges instead of paying at time of building permit. This is not a grant — the charges are still owed and must be paid.

Who may be eligible

  • Developments with conditional approval for a Regional development charges grant, where total Regional development charges exceed the minimum threshold. The deferral amount is capped at the conditional grant amount.
  • Developments identified as eligible for a future Municipal Capital Facility Agreement, where development charges will be exempted subject to conditions and Regional Council approval
  • Developments eligible for a transitional provision under an approved Regional development charges by-law

For more information, contact Financial Management and Planning.