Jul 15 New York Announces COVID-19 Capital Costs Tax Credit Program for Small Businesses
To lessen the burden on small businesses’ increased operational costs from the COVID-19 pandemic, New York has announced a $250 million COVID-19 Capital Costs Tax Credit Program. These costs could include, but are not limited to, structural and building upgrades and health-related supplies.
In order for a small, independently owned business to be eligible for this tax credit, the business must have 100 or fewer employees and gross receipts of less than $2.5 million. Small businesses are eligible to receive a tax credit of 50% of qualifying expenses up to a maximum of $25,000. Lastly, small businesses must have incurred at least $2,000 of qualified expenses.
Some qualifying expenses include:
- Disinfectants to protect against the spread of COVID-19
- Barriers such as sneeze guards
- Hand sanitizer stations
- Air purifier stations
For a complete list of qualifying expenses, please visit https://esd.ny.gov/covid-19-capital-costs-tax-credit.
To apply for this tax credit, you will need to fill out a preliminary screening tool to determine if your business is eligible. If qualified, you will receive a link to another application asking for support documentation and proof of expenses incurred between January 1, 2021, and December 31, 2022.
Feel free to contact your Sax advisor or email [email protected] with any questions.