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.

 



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