Small businesses in NY can seek tax credits for Covid safety projects

Posted 26 October 2022 at 2:35 pm

NY making up to $25,000 available for businesses to help with costs for infectious disease mitigation

Press Release, Gov. Kathy Hochul’s Office 

Governor Kathy Hochul announced applications are now being accepted from small businesses that have successfully completed the pre-screening process to become certified for the COVID-19 Capital Costs Tax Credit Program, which supports companies that made investments to comply with emergency orders and regulations or to increase public safety in response to COVID-19.

“This tax credit will be a crucial lifeline to New York small businesses – the backbone of our state’s economy – and I encourage all who are interested to apply for this much-needed aid,” Hochul said.

Announced as part of Hochul’s first Executive Budget in order to enhance the state’s support for small businesses, and subsequently included in the FY23 Enacted Budget, this new refundable tax relief program targets COVID-19-related expenses for infectious disease mitigation during 2021 and 2022. Eligible COVID-19-related costs include, but are not limited to:

  • Supplies to disinfect or protect against COVID-19 transmission
  • Costs associated with expanding, or defining space to accommodate social distancing
  • HVAC equipment
  • Expenses related to increased outdoor activity and outdoor space expansions
  • Machinery and equipment to facilitate contactless sales

Tax credits will cover 50 percent of eligible costs, up to $50,000, for a maximum tax credit award of $25,000, and credits will be awarded on a first come first serve basis until program funds are depleted.

Eligible businesses must operate a location in New York State, have 100 or fewer employees, $2.5 million or less of gross receipts in the 2021 tax year, and at least $2,000 in eligible costs between January 1, 2021 and December 31, 2022.

Applications will be accepted through March 31, 2023. To claim a tax credit for their 2022 tax return, businesses must apply soon to receive a tax credit certificate from Empire State Development (ESD) on or before December 31, 2022. Tax credits issued on or after January 1, 2023 can be claimed on a business’s 2023 tax return.

To learn more about eligibility and qualifying expenses, visit ESD has contracted with the FORWARD Platform to screen business applications, validate expenses and distribute credits for the program.