New York State Commercial Security Tax Credit

The Division of Criminal Justice Services (DCJS) is now accepting applications from businesses for this tax credit. Applications must be submitted by Thursday, Oct. 31, 2024. Questions may be directed to the Retail Theft Prevention Unit: RetailTheftUnit@dcjs.ny.gov.

Please Note: The total amount of tax credits listed on certificates issued by DCJS pursuant to this program may not exceed $5 million per calendar year. Applications will be processed in the order they are received.

The Division of Criminal Justice Services (DCJS) administers the state’s Commercial Security Tax Credit Program. The program provides a tax credit to small retail businesses (50 or fewer employees) that operate a physical location or locations in the state and incur costs associated with retail theft prevention measures.

Businesses may be eligible for a $3,000 credit per retail location, depending on the business size and expenses. Qualifying retail theft prevention measures:

• security guards registered under the state’s Security Guard Act;
• security cameras;
• substantial interior or exterior locking or other hardening measures;
• alarm systems (including “panic alarms”);
• access control systems;
• exterior license plate reader (LPR) technology; and
• other appropriate anti-theft devices.

To be eligible for the tax credit, a business must:

• File a tax return pursuant to state Tax Law Articles 9 (Corporation Tax), 9-A (Franchise Tax on Business Corporations), or 22 (Personal Income).
• 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.
• Obtain an approved tax certificate from DCJS.
• Not owe any past due state taxes or local property taxes.