Breaking News from the Rubin Report.

New York State has begun taking applications from small businesses for a state tax credit of up to $25,000 as reimbursement for expenditures to protect employees and customers from coronavirus. The credits are available on a first come first serve basis until the $250 million of funding runs out. The tax credits will cover 50% of eligible costs up to $50,000 for a maximum credit of $25,000.

Applications will be accepted through March 31, 2023. But to claim the tax credit on a 2022 state income tax return, businesses must apply before Dec. 31, 2022. Tax credits issued after Jan. 1, 2023 may be claimed on the 2023 tax return. Additionally, to claim the credit on a 2022 tax return businesses must receive a tax credit certificate from Empire State Development by December 31, 2022.

The tax credit is limited to businesses in the state that have 100 or fewer full time equivalent employees, $2.5 million or less in 2021 gross receipts (based on tax return), and at least $2,000 in eligible COVID-related purchases between January 1, 2021 and Dec. 31, 2022. The purchases must be paid for by March 31, 2023.

There will be a multi-step application process as follows:

1. Fill out a required eligibility screening tool to determine if your business qualifies for the program.
2. Once the full application is available, you will be notified by email. You will need to fill out and submit the completed application, including documentation to show proof of expenses.

Pre-screening process can be found here.

Click here to learn more about eligibility and covered expenditures.

Contact us if you have any questions.