Gov. Andrew Cuomo has announced the launch of New York state’s Restaurant Return-to-Work Tax Credit Program, which will steer $35 million toward bringing restaurant staff back to work and providing relief to restaurants impacted by the Covid-19 pandemic.
“The restaurant industry was among the hardest hit during the Covid-19 pandemic, as public health and safety concerns restricted many of its service operations,” Cuomo said. “With the state’s Covid-19 restrictions lifted, restaurants opening to full capacity, and tables filling up, this will support the much-needed hiring of workers by these establishments to meet their increased demand.”
Restaurants that qualify will be able to claim a tax credit of $5,000 per net new hire, up to $50,000 per establishment.
To qualify, restaurants must be independently owned and operated with fewer than 100 employees; be located in areas that were designated an orange or red zone for at least 30 consecutive days by the New York State Department of Health; be able to demonstrate Covid-related losses of at least 40% in gross receipts or full-time equivalent employees; and have hired at least one-full time worker.
Full-service and limited-service restaurants, bars, taverns, nightclubs and breweries, wineries, cideries and distilleries with tasting rooms are all eligible.
The program was approved as part of a package of economic recovery initiatives housed within the state’s 2020 budget.
The incentive also provides a fast-track option, which will allow participating restaurants to claim the tax credit before the end of the fiscal year.
“The pandemic has been devastating to New York’s small business community, particularly restaurants that were shut down for extended periods of time in hot-spot areas,” said State Sen. Anna Kaplan (D-7th), chair of the Committee on Commerce, Economic Development, and Small Business. “The Restaurant Return-To-Work Tax Credit program, part of the State’s Business Pandemic Recovery Initiative, will help small restaurant owners to create new jobs, bring workers back quickly, and help our economy to build back better and stronger.”
Restaurants can visit the program portal for more information and to learn how to apply.
