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New York COVID-19 Capital Costs Tax Credit Program

New York has established the COVID-19 Capital Costs Tax Credit Program (“the Program”) to provide financial assistance to New York State small businesses burdened with a range of operational costs stemming from the COVID-19 pandemic, from structural changes and building upgrades to health-related supplies and materials. The Program offers qualifying businesses relief by providing tax credits to help reduce the pandemic-related financial impact.

Under the program, small businesses can receive a tax credit of 50% of qualifying expenses up to a maximum of $25,000 in tax credits based on qualifying expenses of $50,000. Eligible COVID-related costs include, but are not limited to, disinfectants and cleaning supplies, new HVAC equipment, new contactless-sales equipment and expenses related to outdoor-space expansions.

Next Steps for Employers

The “initial intake” of the Program has begun. Businesses must receive a tax-credit certificate from Empire State Development (ESD) before December 31, 2022, to apply it to their 2022 tax returns.

For additional information on the Program, including how to apply and which expenses qualify, employers are encouraged to visit the ESD’s COVID-19 Capital Costs Tax Credit Program webpage or to contact the ESD via email at: COVID19CapitalCostTaxCredit@esd.ny.gov.

HR Works, Inc., headquartered at 200 WillowBrook Office Park in Fairport (Rochester), New York, with an office in East Syracuse, is a human resource management outsourcing and consulting firm serving clients throughout the United States. HR Works provides scalable strategic human resource management and consulting services, including: affirmative action programs; benefits administration outsourcing; HRIS self-service technology; full-time, part-time and interim on-site HR managers; HR audits; legally reviewed employee handbooks and supervisor manuals; talent management and recruiting services; and training of managers and HR professionals.