Restaurant return-to-work tax credit
The $35 million Restaurant Return-to-Work Tax Credit Program, administered by Empire State Development (ESD), provides small businesses that are COVID-impacted restaurants with an incentive to bring staff back to work and to increase hiring at New York State restaurants.
Qualifying businesses are eligible for a tax credit of $5,000 per net new worker hired, with a maximum available credit of $50,000 per business. Certain credit recipients may also be eligible to request an advance payment of the tax credit. For more information, visit Restaurant Return-to-Work Tax Credit.
Applying for the credit
To receive the credit, you must apply for a certificate of tax credit from ESD; visit Empire State Development at Restaurant Return-to-Work Tax Credit.
Claiming the credit
When ESD approves your application, it will issue your qualifying business a certificate of tax credit. You will use the certificate to claim the restaurant return-to-work credit, either:
- as an advance payment through your Tax Department Online Services account, or
- on your 2021 tax return.
How to claim the credit as an advance payment
In order to claim the restaurant return-to-work tax credit as an advance payment:
- the qualifying business must use August 31, 2021 as the end date to calculate the average ending full-time employment when applying to ESD;
- you must submit information from the certificate of tax credit issued by ESD; and
- you must claim the credit before November 15, 2021.
The Tax Department developed an application that will allow you to request the advance payment through your Online Services account.
- If your qualifying business is a C corporation, then you will claim the advance payment through your Business Online Services account.
- If you are a sole proprietor, owner of a single-member limited liability company (SMLLC), partner, or shareholder, then you will claim the advance payment through your Individual Online Services account.
Note: You must properly reconcile your advance payment on Form IT-655 or CT-655, Restaurant Return-to-Work Credit, when you file your 2021 tax return.
How to claim the credit on your tax return
Claim the restaurant return-to-work tax credit using Form IT-655 or CT-655, Restaurant Return-to-Work Credit, when you file your 2021 tax return.