The Small Business Rate Relief Scheme will be extended in Wales until March 2015, the Welsh Government has confirmed.
First Minister Carwyn Jones said the extension of the scheme would help businesses in Wales.
Mr Jones announced the extension at Cardiff’s Council for Economic Renewal.
He said: “We have shown time and again that we are a government that supports business.
“Extending the Small Business Rate Relief Scheme will support small firms across Wales with many paying no rates at all.
“This is in addition to other targeted business rate schemes that we have established to boost businesses across Wales and encourage growth.
“We have also asked Professor Brian Morgan to seek the views of Welsh businesses about how we can make the best use of new powers over business rates when they are devolved to us.”
Economy Minister Edwina Hart also announced the Welsh Government was looking at ways to help businesses adversely affected by the deferral of revaluation.
Mrs Hart said: “The UK Government recently announced it intends to fully devolve business rates to Wales following the Silk Commission recommendation, which we supported.
“But we aren’t standing still waiting for full devolution. We recently announced that business rates increases would be capped at 2% next year – a move which will inject money into the Welsh economy.
“Now we have successfully pressed the UK Government to extend Small Business Rate Relief in Wales.
“I will now look at the options for a fund to further support businesses, particularly those who have been disadvantaged by the deferral of business rates revaluation until 2017.”
FSB Wales Policy Unit Chair Janet Jones said: “It comes as little surprise that the Small Business Rates Relief Scheme is to be extended for another year, in line with England.
“Ending the scheme in Wales would have caused incalculable harm to small businesses here.
“We will wait to see how the Welsh Government will make use of the Barnett consequential from the £1,000 rebate being given to retailers and food premises in England, but are concerned that the money should be targeted to help those small businesses that are disproportionately hit by our outdated business rates system.”
The move to extend the rate relief scheme follows a vote last month by Assembly Members to cap business rate increases at 2%.
Business rates were set to rise by more than 3% from 2014/15, in line with inflation but an order from the Welsh Government to cap the increase was voted through.