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Writer's pictureBusiness Council Staff

$250 Million COVID Tax Credits for Small Businesses


Governor Hochul announced this week that small businesses with fewer than 100 employees are eligible for tax credits for costs incurred to increase COVID-19 safety protocols. The $250 million capital costs tax credit program is for small businesses forced to comply with emergency orders in response to the pandemic.


The refundable tax relief program covers mitigation efforts made during 2021 and 2022 and includes costs related to disinfectant supplies, social distancing expansion projects, HVAC equipment, outdoor space expansion, and purchasing of contactless points of sale.


The tax credits will cover 50 percent of eligible costs, up to $50,000 for a maximum tax credit of $25,000. The program is on a first-come, first-serve basis with eligible businesses having fewer than 100 employees and less than $2.5 million of gross receipts in the 2021 tax year.


The application process is open through March 31, 2023.


"This tax credit will be a crucial lifeline to New York small businesses - the backbone of our state's economy - and I encourage all who are interested to apply for this much-needed aid," Governor Hochul said through a press release Tuesday.


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