Governor: Small Business Tax Credit Eligibility for COVID ‘Capital Costs’
The Governor's Office, on Monday June 27th, urged small businesses to check their eligibility for the COVID-19 Capital Costs Tax Credit Program, an initiative that will provide $250 million in tax credits for costs that were incurred by small businesses in order to increase COVID-19 safety.
Back in March of this year the Governor also stared the news of another initiative that provided relief to small businesses, that one with a $500 million dollar grant price tag for the COVID-19 Pandemic Small Business Recovery Grant Program. Small businesses can still apply for the program that can provide what is called a 'flexible grant' between $5,000 and $50,000. Note that any expenses or costs that were paid for between January and April 2021 that used funds from the grant recovery program are not eligible to receive the credit for the newly announced program.
COVID-19 Capital Costs Tax Credit Program
We all remember how taxing the pandemic, especially during those early days, was on our local businesses, so this program will be welcome assistance. Small businesses can use this link to use the intake tool that will help them in determining eligibility for the $250 million dollar Capital Costs Tax Credit Program. These funds specifically will help those small businesses that had to invest money in order to be in compliance with emergency orders and regulations as part of the COVID-19 safety response.
Logistics and Qualifications of the Relief Program?
There are a number of costs that small businesses have incurred over the past several years as a result of COVID-19, especially in order to be compliant with ever changing regulations. These are some of the eligible costs, but not a complete list of all charges that would qualify for the credit:
- Disinfectant or supplies that protect against the transmission of COVID-19
- Social distancing accommodation costs (expanding or defining spaces to allow for proper distancing)
- HVAC equipment
- Those expenses associated to outdoor space expansion or increased outdoor activity
- Contactless sales equipment and machinery
In order to qualify for the tax credit of up to $25,000, local businesses must meet the following criteria:
- Business operated at a New York location
- 100 or less employees
- 2.5 million or less of gross receipts in the 2021 tax year
- Minimum of $2,000 in eligible costs been January 1, 2021 and December 31, 2022
Governor Hochul is encouraging those interested to apply for the credit now.
The pandemic has hit New York's small businesses especially hard, forcing many to close and others to incur significant financial burdens to protect their employees and customers from COVID-19. Small Businesses are the backbone of our state's economy, and in order to truly recover from the COVID-19 crisis, we must lend a helping hand.
More information outlining how the tax credits work, deadlines, and application links can be found here.