In addition, NYS in its recently passed budget is offering the following new program. The regulations have not yet been issued but here is an overview:
The RESTAURANT RETURN-TO-WORK (RRTW) TAX CREDIT PROGRAM, which is part of PANDEMIC RECOVERY AND RESTART PROGRAM, provides for a $5,000 (up to $50,000) credit for eligible business that is increasing employment. The refundable credit was put in place to create financial incentives for restaurants that have suffered economic harm because of COVID-19 to rehire workers and increase total employment.
The Program is available to independently owned small businesses that have primarily prepare and provide meals, and/or beverages to customers for consumption, including for immediate indoor on-premises consumption, and have experienced economic harm as a result of the COVID-19 emergency as evidenced by a year-to-year decrease of at least forty percent in New York State between the second quarter of two thousand nineteen and the second quarter of two thousand twenty or the third quarter of two thousand nineteen and the third quarter of two thousand twenty for one or both of: (i) gross receipts or (ii) average full-time employment; and have demonstrated a net employee increase.
- Small business – fewer than 100 full-time employees.
- Operate food/beverage business in NY – e.g. restaurant.
- Experienced harm as a result of COVID – located in NYC or certain designated red or orange zones resulting in a decrease of gross receipts or employment.
- Have demonstrated a net employee increase – from Q1 2021 to the end of 2021.
- Eligible businesses may receive a fully refundable credit for incremental employment in New York State.
- The total tax credit is up to $5,000 per net new job over the Q1 2021 base capped at $50,000.
- The partners in a partnership or shareholders of S-corporations that receive the RRTW credit are allowed a prorate share of the credit.
- Advance cash payment option for 2021 (must apply by November 15th)
- Application required.
- Total program capped at $35 million