Governor Kathy Hochul announced applications are 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 before Dec. 31. Small businesses should submit their applications by Dec. 1 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 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.
Empire State Development entered into 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 www.esd.ny.gov/covid-19-capital-costs-tax-credit or attend a webinar hosted by FORWARD, RSVP at bit.ly/CapitalCostsTaxCreditWebinar.
