Proposal would utilize four tax credits to help highly impacted small businesses in accommodation, arts & entertainment, restaurant and musical and theatrical production industries
Gov. Andrew Cuomo on Wednesday announced a $130 million proposal to enact the Pandemic Recovery and Restart Program to help highly impacted small businesses recover from the COVID-19 pandemic as part of the fiscal year 2022 executive budget. The program would establish three new tax credits and increase a fourth one to help highly impacted small businesses in the accommodation, arts and entertainment, restaurant and musical and theatrical production industries bring back jobs to New York and help the economy recover faster.
"As we embark on our post-COVID reconstruction, it's critical that we not only jump-start our economic recovery, but also ensure we find ways to support highly impacted small businesses that have been among the hardest hit throughout this pandemic," Cuomo said. "The executive budget was crafted to do just that. Through the creation and expansion of $130 million in tax credits, we are working to lessen the burden on critical sectors – restaurants, the arts, and so many others – so those funds can be redirected back to the businesses themselves and get them back up and running."
The proposal would establish or enhance the following tax credits:
√ Small Business Return-To-Work Tax Credit: Provides $50 million in tax credits to support certain highly impacted small businesses impacted by COVID-19 in the hiring of additional workers through 2021. This would help employers hire workers faster than they normally would, helping reduce unemployment and getting workers back on the tax rolls. The credit is $5,000 per employee and up to $50,000 per business. Small businesses must have experienced a minimum 40% revenue or employment loss to qualify.
√ Restaurant Return-To-Work Tax Credit: Provides $50 million in tax credits to support highly impacted restaurants hard hit by the pandemic through 2021. This credit is for restaurants that were hardest-hit by pandemic restrictions, in New York City and other areas in which restrictions were implemented. Restaurants would receive the credit immediately if they choose. The credit would be $5,000 per employee and up to $50,000 per business.
√ New York City Musical and Theatrical Production Tax Credit: Provides $25 million in tax credits for the jump start of the industry and the support of tourism activity in New York City.
√ Extend and Enhance the Musical and Theatrical Production Credit for Four Years: In order to support highly impacted musical and theatrical productions that occur in the state but outside of New York City, the budget extends this credit for four years through 2025 and doubles it to $8 million.