New York State has opened the application process for the $250 million COVID-19 Capital Costs Tax Credit Program. This is a refundable tax relief program designed to support small businesses who have incurred costs in response to COVID-19 during 2021 and 2022. The tax credits will cover 50 percent of eligible costs, with a maximum credit of $25,000, and will be awarded on a first come first served basis until the program funds are exhausted.
Eligible COVID-19-related expenses include disinfecting supplies, costs to expand or define space for social distancing, HVAC equipment, expenses to expand outdoor space, equipment related to contactless sales, and other COVID-related capital expenses.
To qualify, businesses must operate in a location in New York State, have 100 or fewer employees, $2.5 million or less of gross receipts in the 2021 tax year, and at least $2,000 in eligible costs between January 1, 2021, and December 31, 2022.
Applications will be accepted through March 31, 2023, and eligible businesses must apply through Empire State Development (ESD). Small businesses that may be eligible are required to fill out the eligibility screening tool. After completing the prescreening process, you will be emailed a link to the application if your business qualifies.
To learn more about eligibility please visit www.esd.ny.gov/covid-19-capital-costs-tax-credit.