New York State’s COVID-19 Capital Costs Tax Credit Program offering qualifying businesses a tax credit of up to $25,000 is set to expire on March 31, 2023. The tax credit is based on qualifying expenses related to operational costs stemming from the COVID-19 pandemic, structural changes, and building upgrades to health-related supplies and materials.
The program is open to all independently owned and operated businesses in New York State, with less than 100 full-time equivalent employees (FTEs) and gross receipts of less than $2.5 million. Eligible small businesses must be operating at a location or locations within New York State. In addition, a small business must have incurred at least $2,000 of qualifying expenses between January 1, 2021, and December 31, 2022, paid for prior to March 31, 2023.
Qualifying expenses include:
- Supplies to disinfect and/or protect against COVID-19 transmission.
- Restocking of perishable goods to replace those lost during the COVID-19 pandemic.
- Physical barriers and sneeze guards.
- Hand sanitizer stations.
- Respiratory devices such as air purifier systems installed at the business entity’s location.
- Signage related to the COVID-19 pandemic including, but not limited to, signage detailing vaccine and masking requirements, and social distancing.
- Materials required to define and/or protect space, such as barriers.
- Materials needed to block off certain seats to allow for social distancing.
- Certain point-of-sale payment equipment to allow for contactless payment.
- Equipment and/or materials and supplies for new product lines in response to the COVID-19 pandemic.
- Software for online payment platforms to enable delivery or contactless purchases.
- Building construction and retrofits to accommodate social distancing and installation of air purifying equipment, but not for costs related to non- pandemic-related capital renovations or general “closed for renovations” upgrades.
- Machinery and equipment to accommodate contactless sales.
- Materials to accommodate increased outdoor activity such as heat lamps and outdoor lighting, and materials related to outdoor space expansions.
If and when the $250 million budget allocation for the New York State COVID-19 Capital Costs Tax Credit Program is exhausted, business entities will no longer be able to receive tax credit certificates. More information on the program is available here: COVID-19 Capital Costs Tax Credit Program FAQ | Empire State Development (ny.gov).
Don’t wait to apply. Applications will be accepted through March 31, 2023. Click here to see if you qualify.
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