NYS Invites Small Businesses to Check Eligibility for $250 Million COVID-19 Capital Asset Tax Credit Program
Mon Jun 27 2022 1:45pm
Small businesses with 100 or fewer employees can receive tax credits for costs incurred to increase COVID-19 safety
√ Screening tool available here
Governor Kathy Hochul recently announced the opening of the initial intake tool to help small businesses determine their eligibility for the COVID-19 capital cost allowance tax credit. The $250 million 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 New York’s small businesses particularly hard, forcing many to close and others to bear significant financial burdens to protect their employees and customers from COVID-19,” Hochul said. “Small businesses are the backbone of our state’s economy, and in order to truly recover from the COVID-19 crisis, we need to lend a hand. This tax credit will be a crucial lifeline. for New York businesses, and I encourage anyone who is 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 taken on during COVID and help it continue to gradually get back on its feet. I am grateful for the support of Governor Hochul as well as all New York business owners who work every day to rebuild our economy.
Announcement As part of 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 the transmission of COVID-19;
√ Costs associated with expanding or defining the space to accommodate social distancing;
√ HVAC equipment;
√ Expenses related to increased outdoor activities and expansion of outdoor spaces; and
√ 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 granted 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 offers flexible grants of $5,000 to $50,000 to small businesses for COVID-19 related expenses. However, expenses incurred between January 1 and April 1, 2021 that were paid for with the proceeds of this grant program are not eligible for a tax credit under the capital cost allowance tax credit program related 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 to apply as soon as the program is launched, because all tax credits issued on or after January 1, 2023 cannot be claimed before a company’s 2023 tax return.
For more information, visit the ESD website at esd.ny.gov/covid-19-capital-cost-tax-credit.
New York State Senator Anna Kaplan said, “Small businesses have had to incur significant expense to reopen safely during the pandemic, and with these costs continuing to rise, they have more than ever before. need our support. I was proud to sponsor the COVID-19 Capital Cost Tax Credit Program, which will help minimize the financial impacts for small business owners to stay safe and stay 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.”
Assemblyman Al Stirpe said: “As Chairman of the Assembly’s Small Business Committee, it has always been my priority to help local entrepreneurs in any way possible, as I know the dedication needed to keep the lights on. Adding the Projection Tool to Help Accelerate Access to Vital Funding Provided by the $250 Million COVID-19 Capital Cost Allowance Program Will Simplify Small Business Eligibility on track by helping them with COVID-related capital investments of up to $25,000.”