ESD extends application deadline for COVID capital costs tax-credit program to Sept. 30

Empire State Development (ESD) on Monday said it has extended the application deadline for its $250 million COVID-19 capital costs tax-credit program to Sept. 30.

Under the program, New York 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. Kathy 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 new state budget, ESD said.

“By extending the application deadline for the COVID-19 Capital Costs Tax Credit Program to September 30th, 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,” Hope Knight, president, CEO, and commissioner of ESD, said in a news release.

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 COVID-19 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 fewer than 100 full-time employees and gross receipts of less than $2.5 million are eligible.

Applications will be open until Sept. 30, 2023. Small businesses are encouraged to apply through the pre-screening tool.

If businesses receive a tax credit certificate in 2023, they can claim the credit on their 2023 tax return.