New York: The application deadline for Empire State Development’s (ESD) $250M COVID-19 Capital Costs Tax Credit Program has been extended to September 30, 2023. New York State small businesses that made investments to comply with emergency orders and regulations in response to COVID-19 can apply for a refundable tax credit of up to $25,000.
Governor Kathy Hochul announced the launch of the program on October 25, 2022. After the New York state lawmakers finalized the passage of the state budget, the program was officially extended to September 30, 2023.
“The COVID-19 pandemic has taken a toll on our small businesses, and we remain committed to their recovery,” said Hope Knight, President, CEO and Commissioner of Empire State Development. “By extending the application deadline for the COVID-19 Capital Costs Tax Credit Program to September 30th, we are expanding the reach of our support, ensuring that more NY state small businesses receive the financial relief they need to bounce back and thrive once again.”
Small businesses with qualifying COVID-19-related expenses are eligible for a refundable tax credit of up to $25,000 based on qualifying expenses of $50,000. Qualifying expenses are related to building upgrades, structural changes, or supplies to comply with public health or other emergency-related orders and regulations to increase public safety through infectious disease mitigation during 2021 and 2022. Expenses can also include hand sanitizer stations, supplies to disinfect against COVID-19 transmission, equipment for social distancing, air purifiers, contactless point of sale equipment and more.
Businesses independently owned and operated in the State of New York with less than 100 full-time employees and gross receipts of less than $2.5M are eligible.
ESD entered a partnership with FORWARD to screen business applications, validate expenses and distribute credits in a way that uses taxpayer dollars efficiently. Applicants and qualifying businesses can expect the following:
To fill out a pre-screening questionnaire to confirm their eligibility
An online application portal available in 68 languages
Access to multilingual application assistance via phone, text, and email
To present proof of expenses and other supporting documents
A tax credit certificate to submit to the Department of Taxation and Finance when filing a tax return
“FORWARD is proud to continue to provide end-to-end programming support to Empire State Development as the small business community continues to navigate the pandemic-related financial impact on their operations,” said Adnan Mahmud, CEO of FORWARD. “Working with community organizations across New York State and using our advanced application screening tools, our team is well equipped to ensure funding is dispersed equitably, targeting those that are eligible and need it the most.”
Applications will be open until September 30, 2023. Small businesses are encouraged to apply through the pre-screening tool. If businesses receive a tax credit certificate in 2023, they can claim the credit on their 2023 tax return.
To learn more about eligibility and qualifying expenses, visit www.esd.ny.gov/covid-19-