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Freed Maxick Tax Team
New York State COVID-19 Capital Costs Tax Credit Program Now Available Until Program Funds are Exhausted
If you are an independently owned and operated business in New York State that incurred additional COVID-19-related operational costs – from structural changes and building upgrades to health-related supplies and materials – you may be eligible for financial assistance in the form of a refundable tax credit to help reduce pandemic-related financial impacts on your business.
The time to act is now.
Eligibility requirements for the State’s COVID-19 Capital Costs Tax Credit Program include:
- 100 employees or less
- Gross receipts of less than $2.5 million in New York State for the taxable year that includes December 31, 2021
- Have at least $2,000 of qualifying expenses (see below) between January 1, 2021 and December 31, 2022.
Small businesses meeting eligibility requirements 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).
New York Capital Costs Tax Credit Program Qualifying Expenses
The Empire State Development website provides additional details on the program, including this list of qualifying expenses you may have incurred in the following categories of items:
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Qualifying Expenses New York COVID-19 Capital Costs Tax Credit Program |
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Source: https://esd.ny.gov/covid-19-capital-costs-tax-credit#regulations-&-comment-period |
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How to Claim the New York Capital Costs Tax Credit
Credits will be awarded on a first come first serve basis until the $250 million program fund is depleted, so time is of the essence for businesses to apply and capture the credit.
To begin, complete a required eligibility screening tool to determine if your business qualifies for the program. Once qualified, you will be emailed a link to an application that must be completed and accompanied by documentation to show proof of expenses.
If you have any questions about eligibility, the application process, or required documentation for this New York State tax credit, please contact the Freed Maxick Tax Team.