Owners with a small business were forced to accommodate for COVID, resulting in related expenses. Now, they’ll get a COVID tax credit.
Many small businesses that continued to do business during the pandemic were forced to pay for COVID precautions.
In order to stay open, owners needed to take the right steps to keep themselves and customers safe. This may have been in the form of face masks or cleaning supplies, among other things.
Now, businesses that were forced to take on that extra burden in New York can claim a small business COVID tax credit.
Small business tax credit now available for businesses that had COVID related expenses
According to My Twin Tiers, businesses that had to buy things to prevent the spread of COVID can collect a tax credit.
These businesses must have 100 employees or less to qualify.
The largest amount they can expect to receive is $25,000. The minimum amount businesses have to show they paid for COVID expenses is $2,000.
For a $2,000 claim, small business owners can expect $1,000 in tax credit.
$250 million dollars was set aside by New York State for the program.
A lot of restaurants are expected to benefit from the program because they had to spend so much on PPE and cleaning supplies.
Various things are considered expenses related to COVID.
- Face masks
- Barriers for booths, tables, registers
- Hand sanitizer
- Cleaning equipment
- Cleaning products
- Expenses related to outdoor dining
Applying for and receiving the tax credit
In order to apply, there is a pre-screening process that needs to be completed.
This can be done by visiting the Empire State Development website.
Should your business qualify, you’ll get an email with the application to complete and submit.
Documents necessary will show your proof of expenses like receipts and credit card statements. After everything is reviewed and approved, your tax credit certificate will be issued.
In order to claim the refund on your 2022 tax return, you must have that tax certificate. In order to receive the certificate, you must apply by Dec. 31, 2022.
FingerLakes1.com is the region’s leading all-digital news publication. The company was founded in 1998 and has been keeping residents informed for more than two decades. Have a lead? Send it to [email protected]