Article: 50523
Overview
The COVID-19 Capital Costs Credit is a refundable tax credit available to eligible New York small businesses that incurred qualified capital expenses related to improving public health and safety during the COVID-19 pandemic. This credit is designed to assist businesses that have made physical improvements or purchased protective equipment in response to the pandemic.
To claim this credit, you must complete Form IT-657 and attach it to your New York State individual income tax return (Form IT-201 or IT-203).
Who Can Claim the Credit?
You may qualify for this credit if:
- You are an individual, partner, S corporation shareholder, or sole proprietor who received an allocation of the COVID-19 Capital Costs Credit from a qualifying business entity, and
- The business received a certificate of tax credit issued by the Empire State Development (ESD) agency, and
- The credit is being claimed in the year the certificate was issued or carried forward to the current year.
Note: Only businesses that applied for and received official certification from ESD are eligible to pass through the credit to their owners.
Credit Amount
- The credit is equal to 50% of qualified COVID-19-related capital costs,
- Up to a maximum of $25,000 per business,
- Any unused portion of the credit may be carried forward to future years.
This credit is refundable, meaning it may result in a refund even if you owe no tax.
How to Report
- Navigate to the State Taxes section on the left-hand side of the screen.
- Click the link: I’d like to see the forms I’ve filled out or search for a form.
- In the dropdown menu, select New York.
- Click on the IT Credits 500 – 600 Series tab.
- Select IT- 657 – COVID-19 Capital Costs Credit to open the screen.
- Enter all applicable information.
- Click Save once complete.
Additional Resources
For further guidance, see: