The New York City Finance Department said in a letter released Wednesday that employees who have worked remotely because of government-mandated COVID-19 closures may be included in calculations for the city's Relocation Employment Assistance Program.
The unnamed Brooklyn-based taxpayer asked the Finance Department in January whether it could calculate REAP business tax credits based on employees that were forced to telework due to mandated office closures during the COVID-19 emergency. REAP allows for tax credits against city unincorporated business tax liability to certain businesses that relocate from outside eligible areas to locations in eligible areas.
The Finance Department said in the letter that as long as the taxpayer treats the same employees as working at the eligible premises for all purposes related to New York City taxes, it can include employees who have worked remotely. The letter said the ruling is effective from the date of government closures through Aug. 30, 2021.
The letter is dated June 9.
--Additional reporting by James Nani. Editing by Vincent Sherry.
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