NYS COVID-19 Capital Cost Tax Credit Program

NYS COVID-19 Capital Cost Tax Credit Program A Tax Credit program for Small Businesses Impacted by COVID-19

07/27/2022

NYS COVID-19 Capital Cost Tax Credit Program

OVERVIEW • $250 million tax credit program supporting small businesses that made investments to comply with emergency orders/regulations, or to increase public safety, in response to COVID-19 • Tax credits will cover 50% of eligible costs, up to $50,000, for a maximum tax credit award of $25,000 • Eligible costs must be incurred between January 1, 2021 and December 31, 2022 and paid before March 31, 2023 • Credits will be awarded on a first come first serve basis until Program funds are depleted

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NYS COVID-19 Capital Cost Tax Credit Program

Eligible Businesses  100 or less employees  $2.5M or less of gross receipts in the 2021 tax year  At least $2,000 in eligible expenses between 1/1/2021 and 12/31/2022 (minimum tax credit award of $1K)  Operate a location in NYS 3

NYS COVID-19 Capital Cost Tax Credit Program Eligible Expenses              

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Supplies to disinfect and/or protect against COVID-19 transmission Restocking of perishable goods to replace those lost during the COVID-19 pandemic Physical barriers and sneeze guards Hand sanitizer stations Respiratory devices such as air purifier systems installed at the business entity's location Signage related to the COVID-19 pandemic including, but not limited to, signage detailing vaccine and masking requirements, and social distancing Materials required to define and/or protect space such as barriers Materials needed to block off certain seats to allow for social distancing Certain point of sale payment equipment to allow for contactless payment Equipment and/or materials and supplies for new product lines in response to the COVID-19 pandemic Software for online payment platforms to enable delivery or contactless purchases Building construction and retrofits to accommodate social distancing and installation of air purifying equipment *But not for costs for non-COVID-19 pandemic related capital renovations or general "closed for renovations" upgrades Machinery and equipment to accommodate contactless sales Materials to accommodate increased outdoor activity such as heat lamps, outdoor lighting, and materials related to outdoor space expansions

NYS COVID-19 Capital Cost Tax Credit Program • Eligible expenses do not include any cost incurred between January 1, 2021 and April 1, 2021 that were paid for with proceeds from the New York State COVID-19 Pandemic Small Business Recovery Grant Program. See Small Business Recovery • Any such costs must be excluded from the application for the COVID 19 Capital Cost Tax Credit Program.

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NYS COVID-19 Capital Cost Tax Credit Program Additional eligibility requirements • A business entity must be in substantial compliance with any public health or other emergency orders, or regulations related to the entity's business sector or other laws and regulations as determined by the Department. In addition, a business entity may not owe past due state taxes or local property taxes unless the business entity is making payments and complying with an approved binding payment agreement entered into with the taxing authority.

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How to Apply: Go to the Empire State Development Program webpage and complete the eligibility questionnaire. https://esd.ny.gov/covid-19-capital-costs-tax-credit 1. Fill out a required eligibility screening tool to determine if your business qualifies (preliminarily) for the program.

2. Once the full application is available you will be notified by email and will need to fill out and submit the completed application, including documentation to show proof of expenses.

If you have additional questions, please email ESD at COVID19CapitalCostTaxCredit@esd.ny.gov

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NYS COVID-19 Capital Cost Tax Credit Program Summary  A screening tool is available to use to determine pre-eligibility.  If deemed eligible, a link to the application will be provided when the application portal is open in September or early October  To receive a tax credit for their 2022 tax return, businesses must receive a tax credit certificate from ESD on or before 12/31/2022  Tax credits issued on or after 1/1/2023 can be claimed on a business’s 2023 tax return - so get your applications in as soon as possible to receive a credit for your 2022 return!  If you have additional questions, please email ESD at COVID19CapitalCostTaxCredit@esd.ny.gov

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Questions

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