New York State’s 2022-2023 budget included up to $250 million for a COVID-19 Capital Costs Tax Credit Program, intended to provide financial assistance to qualifying small businesses in the state that incurred expenses while complying with COVID-related public health and emergency orders and regulations.
The program is open to all small independently owned and operated businesses operating in New York State with 100 employees or less and gross receipts of less than $2.5 million. In addition, a small business must have incurred at least $2,000 of qualifying expenses between January 1, 2021 and December 31, 2022.
Small businesses can receive a tax credit of 50% of qualifying expenses up to a maximum of $25,000 in tax credits based on qualifying expenses of $50,000.
Taxpayers that qualify for the credit are those that meet the following criteria:
Be a small business, defined as “one which is resident in New York State, independently owned and operated, not dominant in its field and employs 100 or less persons”;
Have $2,500,000 or less of gross receipts in the taxable year that includes Dec. 31, 2021;
Operate a business location in New York state;
Have at least $2,000 in qualifying COVID-19 capital costs; and
Be in compliance with any public health or other relevant emergency orders or regulations, and not owe past due state taxes or local property taxes, unless the taxpayer has entered into (and is in compliance with) a binding payment agreement related to the owed tax.
Qualifying expenses include costs incurred for the following categories of items:
supplies to disinfect and/or protect against COVID-19 transmission;
restocking of perishable goods to replace those lost during the COVID-19 pandemic;
physical barriers and sneeze guards;
hand sanitizer stations;
respiratory devices such as air purifier systems installed at the business entity's location;
signage related to the COVID-19 pandemic including, but not limited to, signage detailing vaccine and masking requirements, and social distancing;
materials required to define and/or protect space such as barriers;
materials needed to block off certain seats to allow for social distancing;
certain point of sale payment equipment to allow for contactless payment;
equipment and/or materials and supplies for new product lines in response to the COVID-19 pandemic;
software for online payment platforms to enable delivery or contactless purchases;
building construction and retrofits to accommodate social distancing and installation of air purifying equipment but not for costs for non-COVID-19 pandemic related capital renovations or general "closed for renovations" upgrades;
machinery and equipment to accommodate contactless sales;
materials to accommodate increased outdoor activity such as heat lamps, outdoor lighting, and materials related to outdoor space expansions; and
other costs as determined by the department to be eligible under this section; provided, however, that "qualified COVID-19 capital costs" do not include any cost paid for with other COVID-19 grant funds as determined by the Commissioner
Interested small businesses should complete the pre-screening process to determine if they are eligible for the credit.
For more information – click here.