Using a little-noticed section of the 2017 federal tax cut law, Niagara Falls has designated several areas as Opportunity Zones where developers can make tax-advantaged investments.
The law allows such developers to defer taxes on their profits for as long as 10 years, according to the Internal Revenue Service website. The incentives apply to economically distressed areas. Niagara Falls is offering the breaks in its downtown and tourist areas, as well as in the northern part of the city.
Blue Cardinal Capital, a Buffalo private equity firm, will set up a fund to provide matches of up to $1 million for developers' investments in the zones.
"We're among the first municipalities in New York to begin taking advantage of this opportunity," Mayor Paul A. Dyster said.