The New York State 2022-2023 fiscal year budget package includes a refundable tax credit to provide relief for small businesses operating in New York that incurred COVID-19 related expenses in 2021 and 2022. Eligible independently owned small businesses (fewer than 100 employees and less than $2.5 million in gross receipts) can receive a credit of 50% of qualifying expenses (capped at $25,000). New York State recently released an online screening tool for businesses to determine their eligibility. If deemed eligible, a link to the application will be made available for the business to complete.
Supporting documentation of expenses incurred between January 1, 2021, and December 31, 2022, and paid for on or before March 31, 2023, will be required to validate the expenses. Eligible taxpayers are encouraged to compile proof of qualifying expenses incurred to date and retain receipts going forward.
As the program is capped at $250 million and the credit is available on a first come-first served basis, it is important to complete the required online screening tool as soon as possible. The screening tool can be accessed here.
For questions or additional information regarding the New York State 2022-2023 budget and its impact on your business, please contact your CBIZ Tax professional.
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