Small businesses with 100 or fewer employees can benefit from tax credits for expenses incurred to increase safety related to COVID-19
Screening tool available here
Governor Kathy Hochul today announced the opening of the Initial Intake Tool to help small businesses determine their eligibility for the COVID-19 Capital Cost Allowance Program. The $250 million COVID-19 capital asset tax credit program will support small businesses that have made investments to comply with emergency orders and regulations or to increase public safety in response to COVID -19. If deemed eligible by the screening tool, a link to the application will be provided when opening the program application.
“The pandemic has hit small businesses in New York particularly hard, forcing many to close and others to bear significant financial burdens to protect their employees and customers from COVID-19,” Governor Hochul said. “Small businesses are the backbone of our state’s economy, and to truly recover from the COVID-19 crisis, we need to lend them a helping hand. This tax credit will be a crucial lifeline for New York businesses and encourage anyone interested to apply for this much-needed help.
Empire State Development President, CEO and Commissioner Hope Knight said: “Businesses have been burdened with many expenses during the pandemic that were necessary to keep their employees and customers safe. This tax credit will ease the burden the business community has borne during COVID and help it continue to gradually get back on its feet. I am grateful for the support of Governor Hochul and all New York business owners who work every day to rebuild our economy.
Small businesses have been particularly hard hit by the downturn in the pandemic. Announced as part of Governor Hochul’s executive budget to continue state support for small businesses, this new refundable tax relief program targets COVID-19-related expenses. Eligible costs related to COVID-19 include, but are not limited to:
- Supplies to disinfect or protect against transmission of COVID-19
- Costs associated with expanding or defining space to accommodate social distancing
- HVAC equipment
- Expenses related to increased outdoor activities and expanded outdoor spaces
- Machines and equipment to facilitate contactless sales
Tax credits will cover 50% of eligible costs, up to $50,000, for a maximum tax credit of $25,000, and credits will be awarded on a first-come, first-served basis, while supplies last. program funds. Eligible businesses must operate a location in New York State, have 100 or fewer employees, $2.5 million or less in gross revenue in the 2021 tax year, and at least $2,000 in costs eligible between January 1, 2021 and December 31, 2022.
Companies are still encouraged to apply for the New York State COVID-19 Pandemic Small Business Recovery Grant Program which provides flexible grants of $5,000 to $50,000 to small businesses for COVID-19 related expenses. However, expenses incurred between January 1, 2021 and April 1, 2021 that were paid for with proceeds from this grant program are not eligible for a tax credit under the Related Capital Cost Allowance Tax Credit Program. to COVID-19.
To qualify for a tax credit for their 2022 tax return, businesses must receive a tax credit certificate from the ESD by December 31, 2022. Potential applicants are encouraged to complete the selection and apply as soon as the program launches, as any tax credits issued on or after January 1, 2023 cannot be claimed until a company’s 2023 tax return. For more information, visit the ESD website at esd.ny.gov/covid-19-capital-cost-tax-credit
State Senator Anna Kaplan said: “Small businesses have had to incur significant expenses to reopen safely during the pandemic, and with these costs continuing to rise, they need our support now more than ever. I was proud to sponsor the COVID-19 Capital Cost Allowance Program, which will help minimize the financial impacts for small business owners to stay safe and open, and I encourage every owner of small business to use the new screening tool to see if they are eligible for relief through the program when it opens.
MP Al Stirpe said: “As Chair of the Assembly’s Small Business Committee, it has always been my priority to help local entrepreneurs in any way I can, because I know the dedication it takes to keep the lights on. The addition of the Screening Tool to help expedite access to vital financing provided by the $250 million COVID-19 Capital Cost Allowance Program will make it easier for a small business to qualify. Let’s get our businesses back on track by helping them with COVID-related capital investments of up to $25,000. »
About Empire State Development
Empire State Development (ESD) is New York’s primary economic development agency. ESD’s mission is to promote a strong and growing economy, encourage the creation of new jobs and economic opportunities, increase state and municipal revenues, and achieve stable local economies. and diversified. Through the use of loans, grants, tax credits and other forms of financial assistance, ESD works to enhance private business investment and growth to spur job creation and support thriving communities in New York State. ESD is also the primary administrative agency overseeing New York State’s Regional Economic Development Councils and the marketing of “I LOVE NY”, the state’s iconic tourism brand. For more information on Regional Councils and Empire State Development, please visit www.regionalcouncils.ny.gov and www.esd.ny.gov.