Governor Hochul Invites Small Businesses to Check Eligibility for $250 Million COVID-19 Capital Costs Tax Credit Program

June 27, 2022

Small Businesses with 100 or Fewer Employees May Receive Tax Credits for Costs Incurred to Increase COVID-19 Safety 

Screening Tool Available Here

Governor Kathy Hochul today announced the opening of the initial intake tool to help small businesses determine their eligibility for the COVID-19 Capital Costs Tax Credit Program. The $250 million COVID-19 Capital Costs Tax Credit Program will support small businesses that made investments to comply with emergency orders and regulations or to increase public safety in response to COVID-19. If deemed eligible by the screening tool, a link to the application will be provided when the program application opens. 

"The pandemic has hit New York's small businesses especially hard, forcing many to close and others to incur significant financial burdens to protect their employees and customers from COVID-19," Governor Hochul said. "Small Businesses are the backbone of our state's economy, and in order to truly recover from the COVID-19 crisis, we must lend a helping hand. This tax credit will be a crucial lifeline to New York businesses and I encourage all who are interested to apply for this much-needed aid."

Empire State Development President, CEO and Commissioner Hope Knight said, "Businesses have been burdened with many expenses during the pandemic that were necessary to keep their employees and customers safe.  This tax credit will ease the burden that the business community incurred during COVID and help it continue to get steadily back on its feet. I am grateful for Governor Hochul's support and also for all of New York's business owners who are working every day to rebuild our economy."

Small businesses were hit particularly hard by the pandemic downturn. Announced as part of Governor Hochul's Executive Budget to continue the State's support for small businesses, this new refundable tax relief program targets COVID-19-related expenses. Eligible COVID-19-related costs include, but are not limited to:

  • Supplies to disinfect or protect against COVID-19 transmission
  • Costs associated with expanding, or defining space to accommodate social distancing
  • HVAC equipment
  • Expenses related to increased outdoor activity and outdoor space expansions
  • Machinery and equipment to facilitate contactless sales

Read the full press release here.