NY State creates online tool to determine small business eligibility for tax credits
ALBANY, N.Y. (WHEC) — New York State has a new online tool to determine if a small business is eligible for a tax credit program.
The Capital Costs Tax Credit Program is distributing $250 million to businesses under 100 employees that invested in protecting public health during the pandemic, such as buying disinfecting supplies or upgrading their HVAC system to better filter viral particles from the air. The money, coming in the form of tax breaks, will also go to businesses that expanded or added more outdoor spaces to promote social distancing.
Businesses in Rochester and across the state can check to see if they’re eligible on the state’s website.
Business owners’ applications must be received by December 31 to receive a tax break on their 2022 return. Any application after the new year can only be applied to the 2023 tax returns. Once you’ve checked your eligibility, you can apply for the program here.
One of the eligibility requirements is that a business must spend $2,000 in renovations or services to protect public health between January 1, 2021, and December of this year. Some common applicable expenses that the state listed includes hand sanitizer stations, plastic barriers, and software to make contactless payment easier.
Gov. Kathy Hocul said the tax credits will help to protect the owners and employees of small businesses.
"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," she said. "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 tax credits will cover 50% of costs on public health and $50,000 is the maximum the state will award. Businesses must have $2.5 million or less of gross receipts in the 2021 tax year to apply.
Small businesses can also apply for grants between $5,000 and $50,000 in COVID-19 related expenses, through the state’s COVID-19 Pandemic Small Business Recovery Grant Program to help with expenses.