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Application Period Open for State’s COVID-19 Capital Cost Tax Credit Program

Applications are now being accepted from small businesses that have successfully completed the pre-screening process to become certified for the State’s COVID-19 Capital Costs Tax Credit Program.

Announced as part of Governor Hochul’s first Executive Budget in order to enhance the State’s support for small businesses, and subsequently included in the State Fiscal Year (SFY) 2022-23 Enacted Budget, this new refundable tax relief program targets COVID-19-related expenses for infectious disease mitigation during 2021 and 2022. Eligible COVID-19-related costs include, but are not limited to:

  • Supplies to disinfect or protect against COVID-19 transmission
  • Costs associated with expanding, or defining space to accommodate social distancing
  • Heating, ventilation, and air conditioning (HVAC) equipment
  • Expenses related to increased outdoor activity and outdoor space expansions
  • Machinery and equipment to facilitate contactless sales

Tax credits will cover 50 percent of eligible costs, up to $50,000, for a maximum tax credit award of $25,000, and credits will be awarded on a first come, first served basis until program funds are depleted. Eligible businesses must operate 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 Jan. 1, 2021 and Dec. 31, 2022.

Applications will be accepted through March 31, 2023. To claim a tax credit for their 2022 tax return, businesses must apply soon to receive a tax credit certificate from Empire State Development (ESD) on or before Dec. 31, 2022. Tax credits issued on or after Jan. 1, 2023 can be claimed on a business’s 2023 tax return.

To learn more about the program and eligibility and qualifying expenses, click here. ESD has contracted with the FORWARD Platform to screen business applications, validate expenses, and distribute credits for the program. The full press release on the program and screening process tool is available here.

Contact: Meg Everett, meverett@leadingageny.org, 518-867-8871