The $250 million COVID-19 Capital Costs Tax Credit Program provides financial assistance to New York State small businesses burdened with a range of operational costs stemming from the COVID-19 pandemic, from structural changes and building upgrades to health-related supplies and materials. The Program offers qualifying businesses relief from the added economic burden by providing tax credits to help reduce the pandemic-related financial impact.
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.
The program is open to all small independently owned and operated businesses operating in New York State with 100 employees or less and gross receipts of less than $2.5 million. In addition, a small business must have incurred at least $2,000 of qualifying expenses between January 1, 2021 and December 31, 2022.
Qualifying expenses include costs incurred for the following categories of items:
- 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 for non-COVID-19 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, outdoor lighting, and materials related to outdoor space expansions; and
- other costs as determined by the department to be eligible under this section; provided, however, that “qualified COVID-19 capital costs” do not include any cost paid for with other COVID-19 grant funds as determined by the Commissioner
To apply, there will be a multi-step application process as follows:
- First, fill out a required eligibility screening tool to determine if your business qualifies for the program.
- If your business qualifies, you will then be emailed a link to the application (once it’s available) for completing and submitting along with documentation to show proof of expenses.
Proof of expenses must be submitted in a form and manner still to be determined but will involve providing receipts or other evidence that a qualifying expense was incurred between January 1, 2021 and December 31, 2022, and paid for on or before March 31, 2023.
If you think your business may be eligible for assistance, we encourage you to consider compiling proof of expenses for costs already incurred and keep receipts for any qualifying expenses incurred between now and December 31, 2022.
If you have additional questions, please email ESD at COVID19CapitalCostTaxCredit@esd.ny.gov.