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Relief is coming for qualifying small businesses in New York State through tax credits to help reduce pandemic-related financial impact. The COVID-19 Capital Costs Tax Credit Program provides a tax credit of 50 percent of qualifying expenses up to a maximum of $25,000 in tax credits based on qualifying expenses of $50,000. The program is intended to help businesses burdened with operational costs such as structural changes, building upgrades, and health-related supplies and materials stemming from the COVID-19 pandemic.
Capital Costs Tax Credit Program Eligibility
Small businesses qualify for the tax credit program if during the 2021 tax year:
- They were operating in New York State
- Had 100 or fewer employees
- Had $2.5 million or less of gross receipts, and
- Had at least $2,000 in COVID-19-related expenses
Eligible COVID-19-related expenses must have been incurred between Jan. 1, 2021, and Dec. 31, 2022, and include but are not limited to:
- Disinfecting supplies, including hand sanitizing stations
- Materials required to accommodate social distancing and define barriers
- Machinery and equipment to facilitate contactless sales
- Air purifying equipment, or
- Outdoor space expansions or upgrades (such as patios, heat lamps, barriers, etc.).
How to Apply for the Capital Costs Tax Credit Program
The first step is to see if your small business qualifies for the program by filling out the required eligibility screening tool. If you do qualify, a link to the application will be emailed to you to complete. You will also need to submit documentation to show proof of your expenses.
Note: this tax credit program will be awarded on a first-come, first-served basis until the funds are exhausted.
For more information, including the full list of qualifying expenses, see the program’s FAQs. If you have any questions, email Empire State Development at [email protected].
