Small Businesses with 100 or Fewer Employees May Receive Tax Credits for Costs Incurred to Increase COVID-19 Safety

NEW YORK – NYS Governor Hochul announced applications are now being accepted for the COVID-19 Capital Costs Tax Credit Program which will support small businesses that made investments to comply with emergency orders and regulations or to increase public safety in response to COVID-19.

For small businesses to receive a tax credit on their 2022 tax return, they must receive a tax credit certificate from New York State before December 31, 2022. Small businesses should submit their applications by December 1st to ensure they receive their tax credit certificate before the end of the year.

Applications are currently open for businesses to become certified for tax credits that help reduce pandemic-related financial impacts. Qualifying expenses are related to building upgrades, structural changes or supplies to comply with public health or other emergency-related orders and regulations to increase public safety through infectious disease mitigation during 2021 and 2022.

Businesses independently owned and operated in the State of New York with less than 100 full-time employees and gross receipts of less than $2.5M are eligible. 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.

ESD entered a partnership with the FORWARD Platform to screen business applications, validate expenses and distribute credits in a way that uses taxpayer dollars efficiently. Applicants and qualifying businesses can expect:

To fill out a pre-screening questionnaire to confirm their eligibility

An online application portal available in 68 languages

Access to multilingual application assistance via phone, text, and email

To present proof of expenses and other supporting documents

A tax credit certificate to submit to the Department of Taxation and Finance when filing a tax return

Applications will be open until March 31, 2023. Small businesses are encouraged to apply through the pre-screening tool. If businesses receive a tax credit certificate in 2023, they can claim the credit on their 2023 tax return.

To learn more about eligibility and qualifying expenses, visit http://www.esd.ny.gov/covid-19-capital-costs-tax-credit or attend a webinar hosted by FORWARD, RSVP at https://bit.ly/CapitalCostsTaxCreditWebinar