COVID-19 Capital Costs Tax Credit Program
Recognizing that the COVID-19 pandemic has required businesses to make significant investments in health and safety upgrades, this tax credit is calculated as 50% of qualifying expenses up to a maximum of $25,000.
The $250 million COVID-19 Capital Costs Tax Credit Program provides a tax credit of of up to $25,000 to eligible NYS businesses that made investments to comply with pandemic-related emergency orders and regulations, or to increase public safety.
The tax credit is calculated as 50% of qualifying expenses up to a maximum of $25,000 in tax credits based on qualifying expenses of $50,000 and is open to all small independently owned and operated NYS businesses with 100 employees or less and gross receipts of less than $2.5 million. In addition, a small business must have incurred at least $2,000 of qualifying expenses between January 1, 2021 and December 31, 2022.
Qualifying expenses include costs such as:
structural changes and building upgrades (eg. retrofits to accommodate social distancing and installation of air purifying equipment).
health-related supplies and materials (eg. supplies to disinfect and physical barriers and sneeze guards to protect against COVID-19 transmission).
machinery and equipment to accommodate contactless sales and increased outdoor activity.
For a full list, check out the COVID-19 Capital Costs Tax Credit Program website.
To get started and see whether your business qualifies, complete NYS' required eligibility screening tool.
Application for this program closes March 31, 2023 or when the $250 million program allocation is fully awarded, whichever comes sooner.