Empire State Development: $250 million COVID-19 Capital Costs Tax Credit program applications extended to Sept. 30

Small businesses with 100 or fewer employees may receive tax credits for COVID-19-related costs

Submitted by Empire State Development

Empire State Development announced the application deadline for ESD’s $250 million COVID-19 Capital Costs Tax Credit program has been extended to Sept. 30. 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. Gov. Hochul announced the launch of the program on Oct. 25, 2022, and secured an extension of the program’s application deadline through September as part of the fiscal year 2024 budget.

ESD President, CEO and Commissioner Hope Knight said. “By extending the application deadline for the COVID-19 Capital Costs Tax Credit program to Sept. 30, we are expanding the reach of our support, ensuring that more New York 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 coronavirus 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 $2.5 million are eligible. 

Applicants and qualifying businesses can expect the following:

√ To fill out a prescreening 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; and

√ A tax credit certificate to submit to the Department of Taxation and Finance when filing a tax return.

Applications will be open until Sept. 30. Small businesses are encouraged to apply through the prescreening 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-capital-costs-tax-credit.