With the Oct. 31 deadline fast approaching, New York small business owners are urged to take advantage of the new Retail Security Tax Credit, part of the state’s recently enacted fiscal year 2025 budget. 

Passed on April 20, the budget includes several key initiatives from Gov. Kathy Hochul, including the tax credit aimed at helping small businesses invest in security equipment to protect their employees and merchandise. To qualify, business owners must submit a completed application by Oct. 31 of each year, as prescribed by the commissioner, to claim the credit for tax years 2024 and 2025. 

According to the govenor’s office, Hochul’s focus on organized retail theft comes as crime data shows a significant spike in these crimes over the past six years. Larceny offenses in New York City have spiked by 51 percent between 2017 and 2023. Robberies, grand larceny and petit larceny in New York City are up by 86 percent during that same time period. 

Hochul’s five-point plan to fight organized retail theft includes a $5 million tax credit to help small businesses invest in added security measures such as video surveillance cameras. To help alleviate the burden on small businesses for additional security measures, the budget creates a $3,000 tax credit for any small businesses who spends the threshold amount of money on retail theft prevention measures. 

In a recent blog, the Security Industry Association (SIA) provided the following eligibility requirements for businesses to take advantage of the Retail Security Tax Credit: 

• Incur qualified retail theft prevention measure expenses in the taxable year for which the credit is sought: Expenses must exceed $4,000 at one location for businesses with 25 or fewer employees; expenses must exceed $6,000 at one location for businesses with 26 to 50 employees. 
• File a tax return pursuant to state Tax Law Articles 0 (Corporation Tax), 9-A (Franchise Tax on Business Corporations) or 22 (Personal Income). 
• Have qualified retail theft prevention measure expenses that exceed $3,000 for each New York retail location during each taxable year. 
• Provide certification in a manner that is described by the commissioner that the business participates in a community antitheft partnership as established by the division between local business and law enforcement agencies. 
• A “qualified retail theft prevention measure expense” refers to any combination of costs related to retail theft prevention measures that is paid or incurred by a qualifying business that exceeds $3,000 per New York retail location. There is a cap to the amount of credits a business can claim, up to $5 million per calendar year. 

All of the following are considered retail theft prevention measures: 

• Security officers registered under the state’s Security Guard Act
• Security cameras
• Perimeter security lighting (interior and exterior)
• Locking or hardening mechanisms
• Alarm systems
• Access control systems
• Exterior license plate reader technology
• To get approved for the credit, a business owner must submit a completed application yearly as prescribed by the commissioner by Oct. 31 of each year. 

For additional details about the tax credit, SIA members can contact George Sewell, SIA government relations coordinator, at gsewell@securityindustry.org.