New York State will be launching the COVID-19 Capital Costs Tax Credit program, a $250 million program that was passed as part of the 2022-23 New York State budget, soon. Small businesses operating in New York with 100 or fewer employees, $2.5 million or less of gross receipts in the 2021 tax year, and at least $2,000 in COVID-19-related expenses are eligible for the program. Eligible COVID-19-related expenses include but are not limited to disinfecting supplies, expanding or defining space to accommodate social distancing, machinery and equipment to facilitate contactless sales, HVAC equipment, or indoor/outdoor space expansions or upgrades (such as outdoor patios/seating, heat lamps, barriers, etc.). The costs must have been incurred between Jan. 1, 2021and Dec. 31, 2022. Small businesses are eligible for tax credits that will cover 50 percent of COVID-19-related expenses, up to $50,000, for a maximum tax credit award of $25,000.
The tax credit program will be awarded on a first-come, first-serve basis until it is depleted. To receive the credit on the 2022 tax return, small businesses must receive a tax credit certificate from Empire State Development on or before December 31, 2022. Small businesses that may be eligible are required to fill out the eligibility screening tool. If the business qualifies, Empire State Development will email a link to the application (once it is made available).
For more information, visit Empire State Development’s website.