NYS Restaurant Return-To-Work Tax Credit Program

The $35 million Restaurant Return-to-Work Tax Credit Program provides an incentive to COVID-impacted restaurants to bring restaurant staff back-to-work, and to increase hiring at NYS restaurants. Qualifying businesses are eligible for a tax credit of $5,000 per new worker hired, up to $50,000 per business.

Eligibility:

• The program is open to all small independently owned and operated restaurants (excludes franchises) with less than 100 employees in New York City 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% in gross receipts or full-time equivalent employees

• Applicants must hire at least one full-time worker at the restaurant

Two Options:

• A “Fast Track” option will allow restaurants to claim the tax credit as an advance payment ahead of filing their 2021 tax returns. Under this option, restaurants will be evaluated based on their net new job growth during a truncated period, from April 1 to August 31, 2021. Applications need to be submitted by 9/15/2021

• Alternatively, businesses 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.