NY Pandemic Small Business Grant

As discussed on page 86 of the Tax Year 2021 M+O=CPE Individual Tax Year-End Workshop Reference Book, New York has created a COVID-19 Pandemic Small Business Recovery Grant Program. 

While proceeds from grants from this program are generally included in the federal income of entities that receive them, the grants are excluded from income for purposes of the New York State income tax. 

S corporations that receive such grants can report the New York subtraction adjustment to income on Form CT-225, New York State Modifications, using code S-219, while partnerships/LLCs can report the New York adjustment to income on Form IT-225, New York State Modifications, using the same code S-219.

Individual owners who receive Schedules K-1 from entities that report this other subtraction adjustment related to grants from this program will also report the subtraction adjustment on their New York personal income tax returns using the same code S-219 on Form IT-225 that must be attached to their New York personal returns.