Businesses Must Stake Claim for NYS Covid Supplies Tax Credit!
What is it? A New York State Tax Credit for small businesses to reimburse them for qualified Covid expenses.
How much? The credit is good for up to $25,000 and is equal to $.50 for every $1 spent on qualified Covid supplies. Business must have spent at least $2,000 in qualified expenses to qualify.
Who qualifies? Small businesses that operate in New York State with 100 or less employees, and 2021 gross receipts of less than $2.5 million, who have spent at least $2,000 on qualified expenses between January 1, 2021 and December 31, 2022. Expenses cannot be paid for using other Covid-19 grant monies.
How to Claim? Visit www.esd.ny.gov/covid-19-capital-costs-tax-credit for details and complete the Required Eligibility Screening Tool: https://formrouter.apps.esd.ny.gov/ccs@ESD/covid_cost_screening.html. If your business qualifies, you will be emailed a link to the application.
When to Claim? Visit the above website to file your claim and receive your tax credit certificate by December 31, 2022 in order to claim the credit on your 2022 tax return. New York will accept applications until March 31, 2023, but claims after December 31, 2022 will have to wait and be claimed on the 2023 tax return. This program awards credits on a first come first serve basis, so file your claim as soon as possible!
What are Qualified Expenses? The following is a list from the NYS webpage.
- supplies to disinfect and/or protect against COVID-19 transmission;
- restocking of perishable goods to replace those lost during the COVID-19 pandemic;
- physical barriers and sneeze guards;
- hand sanitizer stations;
- respiratory devices such as air purifier systems installed at the business entity’s location;
- signage related to the COVID-19 pandemic including, but not limited to, signage detailing vaccine and masking requirements, and social distancing;
- materials required to define and/or protect space such as barriers;
- materials needed to block off certain seats to allow for social distancing;
- certain point of sale payment equipment to allow for contactless payment;
- equipment and/or materials and supplies for new product lines in response to the COVID-19 pandemic;
- software for online payment platforms to enable delivery or contactless purchases;
- building construction and retrofits to accommodate social distancing and installation of air purifying equipment but not for costs for non-COVID-19 pandemic related capital renovations or general “closed for renovations” upgrades;
- machinery and equipment to accommodate contactless sales;
- materials to accommodate increased outdoor activity such as heat lamps, outdoor lighting, and materials related to outdoor space expansions
Honorine Campisi, CPA