(Screening Tool Available Here)
Governor Kathy Hochul has announced the opening of the initial intake tool to help small businesses determine their eligibility for the COVID-19 Capital Costs Tax Credit Program. Announced as part of Governor Hochul’s Executive Budget to continue the State’s support for small business, this new refundable tax relief program supports small businesses that made investments to comply with emergency orders and regulations or to increase public safety in response to COVID-19.
“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,” Governor Hochul said. “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. This tax credit will be a crucial lifeline to New York businesses and I encourage all who are interested to apply for this much-needed aid.”
The program is open to eligible businesses that operate a location in New York State, have 100 or fewer employees, and $2.5 million or less of gross receipts. Businesses must have at least $2,000 in eligible costs between January 1, 2021 and December 31, 2022.
A business is eligible for a tax credit of 50% of qualified credits, for a maximum tax credit award of $25,000 per business. Credits will be awarded on a first come first serve basis until program funds are depleted. There is a maximum of $250 million available for tax credits under the program.
Eligible COVID-19-related capital investments include, but are not limited to:
- Supplies to disinfect or protect against COVID-19 transmission
- Costs associated with expanding space to accommodate social distancing
- HVAC equipment
- Expenses related to increased outdoor activity and outdoor space expansions
- Machinery and equipment to facilitate contactless sales.
- Materials needed to define space and allow for social distancing
How to Apply
There will be a multi-step application process. First, fill out a required eligibility screening tool (Screening Tool Available Here) to determine if your business qualifies for the program. If your business qualifies, you will then be emailed a link to the application (once it’s available) for completing and submitting along with documentation to show proof of expenses. To receive a tax credit on a 2022 tax return, businesses must receive a tax credit certificate from ESD on or before December 31, 2022.
Business entities are encouraged to apply to the program as soon as possible. Once the $250 million in available tax credits is exhausted, there will be no more tax credit certificates awarded.
ABOUT GROSSMAN ST. AMOUR CPAS PLLC
Grossman St. Amour CPAs PLLC is located in downtown Syracuse, New York and has been in business for sixty-five years. The firm provides businesses and individuals with accounting, audit, taxation, business formation and valuation, financial planning, investment consulting, and fraud examination and deterrence services. For more information about how Grossman St. Amour CPAs PLLC can be of service to you, contact our professionals at email@example.com or 315.424.1120.