(The Center Square) – Financial help could be on the way for New York’s small businesses with the reintroduction of a bill last week that would allow up to $5,000 in tax credits to businesses with 50 employees or fewer.
New York Assemblyman Jake Ashby, R,C,I-Castleton, said his bill, A.3566, would enable small businesses to purchase supplies, remodel or retrofit their establishments with equipment designed to prevent the spread of COVID-19 with $100 million in total tax credits for qualifying businesses.
Ashby cited National Federation of Independent Businesses (NFIB) statistics wherein 22 percent of small business owners are fearful they may have to close due to the pressures of the pandemic on top of preexisting stresses such as high taxes.
The tax credit would be provided for each business location where new amenities have been installed. Leftover credit may be continued over the following three years.
The bill would go into effect the first January after passage.
It has the support of the Capital Region Chamber of Commerce, which has seen its share of shuttered businesses over the past year due to pandemic-related issues.
Chamber Vice President of Government Relations Thomas O’Connor said hospitality and tourism-related businesses such as hotels, restaurants and performing arts venues have particularly suffered.
“A $5,000 tax credit … helps businesses and allows them to do the right thing to protect the public,” he said. ”It would help them offset seeing a decrease in revenue at this time.”
Safety equipment such as Plexiglas shields between tables, signage and high-tech and costly temperature checking systems could be purchased and installed without breaking the bank.
The chamber’s position is that the tax credit would provide the safest reopening possible with the fewest business losses from the high expense of protective gear, resulting in a more successful recovery in communities statewide.
O’Connor believes the best chance for a strong recovery involve both small and large acts – individual states offering tax credits combined with relief from Congress will bring more opportunity for businesses to survive the pandemic.
“Any type of help is helpful so that hopefully when we do get to the other side of this pandemic we have small businesses that are open,” he said. “Which is very important because they provide the bulk of the jobs in any community.”
Source: https://www.thecentersquare.com/new_york/new-york-bill-proposes-tax-credits-for-small-businesses-staggered-by-pandemic/article_a0e64664-6a49-11eb-a4f5-f366b5d186f9.html