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.  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.

To be responsive to the needs of COVID-impacted restaurants, the Restaurant Return-to-Work Tax Credit provides a Fast Track Option, which allows a business to claim the credit before the end of the tax year.

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.

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

Eligible businesses are full-service and limited service food and beverage establishments in New York State that predominately support on-premises, in-person dining, such as:

• 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