In New York’s ongoing efforts to provide relief to small businesses recovering from the financial impact of the pandemic, the state has created the COVID-19 Capital Costs Tax Credit Program.
The program offers a 50% tax credit of up to $25,000 on qualifying pandemic-related expenses. The credit is available to businesses independently owned and operated in NY with 100 employees or less and gross receipts of less than $2.5 million.
To qualify, a business must have incurred at least $2,000 in eligible expenses between January 1, 2021 and December 31, 2022. Eligible expenses include disinfecting and sanitizing products, materials and retrofits required for social distancing, and equipment to accommodate contactless sales and outdoor activities. Costs that have already been reimbursed by other COVID-19 grants are not eligible.
How to get started
Applications are not yet being accepted, but businesses must complete an eligibility screening tool in order to receive an application once it is available. If the application is approved, the business will apply to the State Department of Taxation and Finance to claim the credit.
In the meantime, it is important to compile all of the documentation that will be required to substantiate your application. For assistance or more information, please contact your Grassi tax advisor or Dorothy McAuliffe, Senior Tax Manager in our State and Local Tax practice.