New York State
COVID-19 Capital Cost Tax Credit Program

Program Overview

  • $250 million tax credit program supporting small businesses that made investments to comply with emergency orders/regulations, or to increase public safety, in response to COVID-19
  • Tax credits will cover 50% of eligible costs, up to $50,000, for a maximum tax credit award of $25,000
  • Eligible costs must be incurred between January 1, 2021, and December 31, 2022, and paid before March 31, 2023
  • Credits will be awarded on a first-come, first serve basis until Program funds are depleted.

NEED SUPPORT? 
If you need help with this online application, please email us at 
NYtaxcredit@livestories.zendesk.com or call us at (855) 582-FWRD (3973). The hours for the support line are as follows: 8:00 AM – 6:00 PM Monday-Friday.

General Timeline

October 18th – September 30th

All applications will be reviewed on a first come, first serve basis and dependent on the completeness of application at the time of submittal.

Notification of approved tax credit applications will happen continuously.

Eligibility Requirements

The business must:

• Continued to be in operation as of the date of application;

• Be incorporated in New York State or licensed or registered to do business in New York

State;

• Not owe past due federal, state or local taxes, unless making payments pursuant to and
complying with an approved binding agreement with the appropriate taxing authority;

• Eligible Applicants may not be more than 5% owned, directly or indirectly, by a publicly
traded company;

• Be open to and/or service the public

• Be operating as a small business in New York State with less than $2.5 million in gross
receipts in 2021;

• Have incurred at least $2,000 of qualifying expenses between January 1, 2021 and
December 31, 2022;

• Be in substantial compliance AND attest to being in substantial compliance with applicable
federal, state and local laws, regulations, codes and requirements;

• Operate a business with 100 or less employee’s

Required Documents

Application information to have ready:

2021 Business Income Tax return:

  • For partnerships – include IRS Form 1065 and Schedule K-1
  • For sole proprietors – include IRS Form 1040 Schedule C
  • For Corporations – include IRS Form 1120 or 1120-S

Two of the following documents demonstrating that the business is operating at the qualifying location(s):

  • Current lease; or

  • Utility bill; or

  • Current business bank statement; or

  • Current business mortgage statement; or

  • Business credit card statement; or

  • Professional insurance bill; or

  • Payment processing statement; or

  • NYS ST-809 or ST-100 sales tax collection documentation.

Listing of names, social security number or federal employer identification number, and percentage ownership for ALL owners of the business.

Download NY Tax Credit – Schedule of Ownership.

Receipts, ledgers, third-party bills, etc.

Download NY Tax Credit – Proof of Expense.

Required: Download NY Tax Credit – Proof of Expense. This is a required worksheet to be uploaded with your expenses in addition to your invoices/receipts

Worksheet: Download NY Tax Credit – Proof of Expense. This is a required document to be uploaded to correctly identify all owners form 1-30+.

You can store documents in your profile so that you can easily find them to include in your applications. These file formats are supported: .doc, .docx, .gif, .jpeg, .jpg, .pdf, .png, .xls, and .xlsx

Frequently Asked Questions

General

These tax credits are intended to support New York state small businesses. New York state businesses were significantly impacted by COVID-19 safety protocols mandated by New York state.

The tax credit program ends on March 31st for accepting applications, but the program is on a first-come, first serve basis, and funds could be depleted before you apply if you wait too long.

Logistics and Portal Questions

The FORWARD Technical Support will be provided by phone and/or email to applicants with questions related to the FORWARD platform where the New York State COVID-19 Capital Cost Tax Credit Program online application is housed.

For technical support, call (855) 582-FWRD 3973 or email NYtaxcredit@livestories.zendesk.com. The hours for the support line are as follows: 8:00 AM – 6:00 PM Monday-Friday.

New York State has partnered with FORWARD to manage the application process and distribute awards. FORWARD is a Washington state technology company that powers the FORWARD application portal. FORWARD offers application services for programs such as this nationwide.

You will need to provide proof of expenses in a form and manner prescribed by ESD showing that qualified expenses claimed in the application were paid on or before March 31, 2023.

For purposes of this Program, paid shall mean that the vendor of any item or items indicated in paragraph 9 above has received payment for such item or items from the applicant.

Proof of expenses may include an original invoice, legible photocopy thereof, or other record, or some combination thereof, identifying the qualified expense paid by the applicant.

Supporting documents provided as proof of expense should identify the payee, the amount paid, proof of payment, the date incurred, and include a description of the item purchased or service received that shows the amount was for a qualified expense. Documents for expenses may include the following:

  • Canceled checks or other documents reflecting proof of payment/electronic funds transferred
  • Cash register tape receipts
  • Account statements
  • Credit card receipts and statements
  • Invoices showing the bill was paid
  • A combination of supporting documents may be needed to substantiate all elements of an expense.

Copies of the documents must be uploaded at time of application. An application will not be considered complete and approved without all the necessary supporting documentation uploaded.

All file uploads are secure and protected.

Proof of expense will be required for every expense item over $1,000. A random sample of items less than $1,000 will be selected and proof of expense required for the selected items.

Tax Credit Awards

Tax credits will cover 50% of eligible costs, up to $50,000, for a maximum tax credit award of $25,000. At least $2,000 in qualified expenses between 1/1/2021 and 12/31/2022 (minimum tax credit award of $1K).

You will receive an email from FORWARD Support via DocuSign notifying you if you have been awarded a tax credit with a tax certificate attached for you to review.

  • Supplies to disinfect and/or protect against COVID-19 transmission
  • Restocking of perishable goods to replace those lost during the COVID-19 pandemic
  • Physical barriers and sneeze guards
  • Hand sanitizer stations
  • Respiratory devices such as air purifier systems installed at the business entity’s location
  • Signage related to the COVID-19 pandemic including, but not limited to, signage detailing vaccine and masking requirements, and social distancing
  • Materials required to define and/or protect space, such as barriers
  • Materials needed to block off specific seats to allow for social distancing
  • Certain point of sale payment equipment to allow for contactless payment
  • Equipment and/or materials and supplies for new product lines in response to the COVID-19 pandemic
  • Software for online payment platforms to enable delivery or contactless purchases
  • Building construction and retrofits to accommodate social distancing and installation of air purifying equipment
    • *But not for costs for non-COVID-19 pandemic-related capital renovations or general “closed for renovations” upgrades
  • Machinery and equipment to accommodate contactless sales
  • Materials to accommodate increased outdoor activity such as heat lamps, outdoor lighting, and materials related to outdoor space expansions
  • This list is not exhaustive, and other expenses will be reviewed on a case-by-case basis.

Once a submission is reviewed, awardees will be notified via email to take the following steps in receiving their tax credit award. An Awardee will be provided a DocuSign with the necessary identifiers for obtaining a tax credit.

FORWARD Online Application Tutorials

FORWARD Online Application Tutorials

2 Videos

The New York is committed to helping all businesses, especially small business owners, navigate available resources to help our state economy get back on track.

FORWARD is administering the COVID-19 Capital Cost Tax Credit Program on behalf of the State of New York. 


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