New York State COVID-19 Capital Costs Tax Credit Program
Posted by Cory Van Deusen V on October 27, 2022
The time for small businesses to apply for the COVID-19 Capital Costs Tax Credit Program (the Program) in New York is here. The Program allows small businesses to receive a tax credit of 50% of qualifying expenses, for a maximum credit of $25,000 based on qualifying expenses of $50,000.
Established as part of the 2022-2023 New York State budget, the COVID-19 Capital Costs Tax Credit Program supports companies that either made investments to comply with regulations or to increase public safety in response to the COVID-19 pandemic. Eligible costs under the program include supplies to disinfect and/or protect against COVID-19 transmission, hand sanitizer stations, HVAC equipment, and physical barriers and sneeze guards. A full list of qualifying expenses can be found on New York State’s website.
For a small business to qualify for the credit, it must:
- Be an independently owned and operating business in New York
- Have 100 or fewer employees
- Have gross receipts less than $2.5 million in the 2021 tax year
- Have incurred at least $2,000 in eligible costs between January 1, 2021 and December 31, 2022
To apply, businesses must first fill out the eligibility screening tool on the State’s website. When the screening tool confirms eligibility, your business will be emailed a link to complete the application, as well as submit supporting documentation. The credits will be awarded on a first come first served basis until the Program’s funds are depleted.
Businesses that received assistance through the Payroll Protection Program (PPP), Economic Injury Disaster Loan Program (EIDL), and the Restaurant Revitalization Fund (RFF) are still eligible to apply for this program. If proceeds from any of these programs were applied towards eligible expenses under this new tax credits though, those expenses would not qualify or would be reduced.
For more information on New York’s COVID-19 Capital Costs Tax Credit Program, refer to New York State’s website. If you have any questions on the Program and how it could affect your business, please contact your tax advisor at Lumsden McCormick.
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Cory has over 20 years of experience providing tax and consulting services to commercial businesses and individuals. His expertise lies in the myriad of business development incentives offered by various federal, state, and local agencies to targeted industries such as Manufacturing, Software Development, Technology Companies and many other in order to encourage regional investment, spur job creation, and foster economic growth. The available incentives include refundable tax credits, tax abatements, grants, and forgivable loans. He has extensive knowledge of Start-Up NY, Opportunity Zones, the Excelsior Jobs Program, Qualified Emerging Technology Companies, and various local incentives such as Industrial Development Agency (IDA) benefits. Additionally, he spends his time providing services to Start-Up Companies ranging from a founder with an idea to multi-national tech companies that have raised hundreds of millions of dollars. Cory has experience in all areas of U.S. federal and NY State taxation. He has been with Lumsden McCormick since 2001, was named partner on January 1, 2015. He is a member of the Firm’s Executive Committee and is head of the commercial services group.