Governor Kathy Hochul announced that applications from small businesses that have successfully completed the are now being accepted preselection process to become certified for the COVID-19 Capital Costs Tax Credit Program, which supports businesses that have made investments to comply with emergency orders and regulations or to increase public safety in response to COVID-19.
“When the pandemic devastated the profits of most small businesses across New York State, I promised to help them from day one.” Governor Hochul said. “This tax credit will be a crucial lifeline for New York’s small business, the backbone of our state’s economy, and I encourage all interested parties to apply for this much-needed help.”
Announced as part of Governor Hochul’s first executive budget to strengthen state support for small businesses, and later included in the approved budget for fiscal year 2023, this new reimbursable tax relief program targets COVID-19 related spending for mitigation of infectious diseases in 2021 and 2022. Costs related to COVID-19 include, but are not limited to:
- Supplies to disinfect or protect against COVID-19 transmission
- Costs associated with expanding or defining space to accommodate social distancing
- air conditioning equipment
- Expenditure related to the increase in outdoor activities and the expansion of outdoor space
- Machinery and equipment to facilitate contactless sales
Tax credits will cover 50 percent of eligible costs, up to $ 50,000, for a maximum tax credit of $ 25,000, and credits will be awarded on a first-come-first-served basis until program funds are exhausted. Eligible businesses must operate from a New York State location, have 100 employees or fewer, gross revenue or less of $ 2.5 million in fiscal year 2021, and eligible costs of at least $ 2,000 between January 1, 2021 and December 31, 2022.
Applications will be accepted until March 31, 2023. To apply for a tax credit for the 2022 tax return, companies must apply early to receive an Empire State Development (ESD) tax credit certificate by December 31, 2022 or earlier. Tax credits issued on or after January 1, 2023 can be requested on a company’s 2023 tax return. For more information on eligibility and eligibility fees, please visit www.esd.ny.gov/covid-19-capital-costs-tax-credit. ESD has contracted with FORWARD Platform to evaluate business applications, validate expenses and distribute credits for the program.
The COVID-19 Capital Cost Tax Credit is part of Governor Hochul’s mission to support small businesses affected by the pandemic. More than $ 1 billion was allocated to small business recovery in Governor Hochul’s first budget, including the $ 250 million COVID-19 capital costs tax credit, the recovery grant program. $ 800 million pandemic small business grant and the first in the nation, $ 200 million for the Startup Funding Grant Program to support early stage micro and small businesses that opened just before or during the COVID pandemic- 19.
Empire State Development President, CEO and Commissioner Hope Knight said: “Through no fault of their own, small businesses across the state had to pay many expenses during the pandemic that were necessary to keep their employees and customers safe, but not planned or budgeted. Under Governor Hochul’s leadership, the program Tax for Capital credit The costs related to COVID-19 will help ease the burden on the business community during the pandemic and help it continue to steadily recover. “
State Senator Anna M. Kaplan said: “Small businesses have had to incur significant expenses to safely reopen during the pandemic, and with those costs continuing to rise, they need our support more than ever. I was proud to sponsor the program’s capital cost program. COVID-19 tax credit “. it will help minimize the financial impact small business owners face in staying safe and open, and I encourage all small business owners to check if they are eligible and seek help as soon as possible. “
Assemblyman Al Stirpe said: “As chairman of the Assembly’s Small Business Committee, it remains a priority for me to help local entrepreneurs in any way possible because I know the dedication it takes, day after day, to keep the lights on. Small businesses represent 98% of all businesses in New York State and those owners employ 53% of the workforce They are the fuel of our economic engine and we must continue to bear them as unanticipated safety costs that include everything from outdoor service areas to new HVAC systems, hitting them hard As they sacrificed themselves to serve our communities, we must help them fully recover from the pandemic Opening applications for the COVID-19 Capital Cost Tax Credit Program is the support that owners small businesses expect from New York State. Let’s all go back to work! “
Information on the FORWARD platform
The FORWARD platform is the leading comprehensive integrated program management (IPA) solution for state and local governments in the United States. FORWARD modernizes the government’s approach to program management by integrating all essential services, components, people and technology into one lean and secure solution. From app back-end setup, to community outreach, marketing, multilingual support, eligibility screening, fraud detection and distribution, to reporting. The FORWARD platform distributes resources faster than ever while reducing waste, fraud and administrative costs. FORWARD has already helped governments administer dozens of programs to bring resources to homes and businesses quickly, affordably and securely. For more information visit www.forwardplatform.com.
Development of the Acerca de Empire State
Empire State Development (ESD) is New York’s premier economic development agency. ESD’s mission is to promote a vibrant and growing economy, foster the creation of new jobs and economic opportunities, increase revenues for the state and its municipalities, and build stable and diverse local economies. Through the use of loans, grants, tax credits and other forms of financial assistance, ESD is committed to improving the investment and growth of private businesses to stimulate job creation and support thriving communities across the state of New York. ESD is also the primary administrative agency overseeing the New York State Regional Economic Development Councils and the marketing of “I LOVE NY,” the state’s iconic tourism brand. For more information on regional councils and Empire State Development, visit www.regionalcouncils.ny.gov y www.esd.ny.gov.
