Restaurants and bars in New York City continue to feel the effects of the Covid-19 pandemic. Although, they are able to operate at full capacity, months of lost revenue, costly loans (including personal ones), devastating supply chain issues, and vaccination mandates all contribute to a sluggish return to “normal”.
The Restaurant Return-to-Work Tax Credit may offer some relief. Qualifying businesses are eligible for a tax credit of $5,000 per new worker hired, up-to $50,000 per business. The Program is open to eligible restaurants located in New York City, or in an area outside of New York City that was designated an Orange or Red Zone for at least thirty consecutive days.
Restaurants may claim the credit after August 31, 2021 (Fast Track Option), if the business can demonstrate a net employee increase of at least 1 full-time employee as measured from April 1, 2021 to August 31, 2021. Alternatively, restaurants can choose to claim the tax credit on their 2021 NYS tax return if the business can demonstrate a net employee increase of at least 1 full-time employee as measured from April 1, 2021 to December 31, 2021.
- The program is open to all small independently owned and operated restaurants (excludes franchises) with less than 100 employees in NYC or in areas that were designated by the NYS Department of Health as either an Orange or a Red zone for at least 30 consecutive days
- Applicants must be able to demonstrate Covid related losses of at least 40 percent in gross receipts or full-time equivalent employees
- Applicants must hire at least one full-time worker at the restaurant
- Full-service restaurants (i.e. waiter/waitress service)
- Limited-service restaurants – where patrons generally order food at a counter and pay before eating
- Bars, taverns, nightclubs, or other drinking places
- Certain breweries/wineries/cideries/distilleries/meaderies with a tasting room
To be considered for the Targeted Economic Injury Disaster Loan (EIDL) Advance and the Supplemental Targeted Advance grants, a business must apply or have applied for an EIDL and meet the eligibility criteria for the advance grants (discussed below). A business does not, however, need to accept the actual EID loan itself or even be approved for the loan to receive one of these grants. Businesses can note that they want to be considered for the EIDL advance grants only on the EIDL application.