New York City comptroller Scott Stringer earlier this month introduced a series of proposals that include tax incentives geared toward helping struggling small businesses affected by the recent global health crisis. The proposals, initiated on Aug. 5, must be agreed upon by New York City lawmakers and Mayor Bill de Blasio, who has them under review.
Along with the tax benefits, another component of Stringer’s plan is to help small businesses access federal aid. Many of New York City’s small businesses have taken severe hits in the past five months as declining sales, revenue and customer streams have caused many of them to lay off employees and operate at lower capacities.
Refundable tax credits, encouraging entrepreneurs
Stringer’s plan includes:
- Refundable business tax credits specifically for restaurants, personal services companies and retailers that have annual revenues of under $5 million. The idea is that tax credits will help these companies recover any money spent on changes and remodeling to their businesses due to the recent health crisis. Examples include restaurants having to reconfigure for outdoor dining arrangements as well as the purchasing of safety-related equipment.
- Encouraging entrepreneurs by providing them with tax credits to start businesses in retail corridors that have high vacancy rates. The comptroller’s office noted that companies that move into these areas will receive a credit on either property taxes or the city’s commercial rent tax.
Such an effort to help small businesses on Main Street is merely a small and initial step but could have positive effects. So much more is necessary to revive small businesses in the city.