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Department of Taxation and Finance

COVID-19 capital costs credit

For tax year 2024, you can only claim this credit if you received a share of the credit from an entity that was issued a certificate from Empire State Development (ESD) in 2023.

Who is eligible?

You are entitled to claim this refundable tax credit if your small business:

  • operates a business location in New York State;  
  • had no more than 100 employees and had gross receipts of $2.5 million or less in the tax year that included December 31, 2021;
  • incurred at least $2,000 of qualified COVID-19 capital costs from January 1, 2021 through December 31, 2022; and
  • applied for and received a certificate of tax credit from Empire State Development (ESD).  For more information on the program and how to apply, visit Empire State Development: COVID-19 Capital Costs Tax Credit Program.

How much is the credit?

The credit is equal to 50% of the qualified COVID-19 capital costs incurred.  The minimum amount of tax credit is $1,000, and the maximum amount of credit is $25,000 per business.

How do I claim the credit?

  • The tax credit can be claimed in the taxable year that includes the date that the certificate of tax credit was issued by ESD to your business.
  • Claim the amount of credit listed on the certificate of tax credit by completing Form IT-657 or CT-657, COVID-19 Capital Costs Credit, as applicable, and filing it with your tax return. 

Additional information

Updated: