New York Retail Security Tax Credit: What to know and how to apply

What is the NY Retail Security Tax Credit? 

The NY Retail Security Tax Credit for 2024 – 2025 is an incentive to help small businesses invest in added security measures, such as security cameras. This New York small business security tax credit grants retailers financial assistance in purchasing physical security technology or employing security staff to help fight the growing problem of organized retail theft in NY state.

The FY25 State Budget states a $5 million NY state small business safety tax credit will be available in 2024 and 2025. The NY shoplifting tax credit is for small businesses in New York for their qualified retail theft prevention measures. ​“Qualified retail theft prevention measures” refers to NY retail theft prevention measures paid or incurred by a qualifying business.

Eligibility

For a business to be eligible to apply for a NY Retail Security Tax Credit, the following are required:

• Must have 50 or fewer employees across all locations
• Must have qualified retail theft prevention measure expenses that exceed $4,000 (if 25 or fewer employees) or $6,000 (if more than 25 employees) for each NY retail location during each taxable year.
• Must operate one or more physical retail stores open to the public.
• Must file a tax return pursuant to articles 9, 9‑A or 22 of the tax code.
• Obtain an approved tax certificate from the Division of Criminal Justice Services (DCJS).
• Must not owe past due local, state or property taxes, unless adhering to a binding payment agreement.

For the full list of eligibility requirements, please visit the DCJS website.

How to apply for the New York Retail Security Tax Credit

The New York Division of Criminal Services has published guidelines for applying for the New York Retail Security Tax Credit. Here is what you need to know.

Check that your business meets the eligibility requirements

Before you complete and submit an application for New York small business security tax credit grants, your business must meet the eligibility requirements stated in the previous section and provide the necessary documentation concerning filing a tax return and an anti-theft partnership certification.

Failure to meet the requirements would result in a rejected application and the applicant being unable to take advantage of New York State’s retail security incentives.

Submit a completed application

To get approved for the New York Shoplifting Tax Credit, you must submit a completed application for 2024 and 2025 to the Division of Criminal Justice Services. The deadline for submitting completed applications for the New York State small business security upgrades tax credit is October 31, 2024, and 2025.

Within this application, business owners must demonstrate their New York State small business safety tax credit eligibility and provide proof of their yearly security expenditure.

NY Retail Security Tax Credit qualifications 

To qualify for the NY Retail Security Tax Credit for 2024 and 2025, small businesses in New York State must invest in security improvements specified in the FY25 State Budget. Below is a list of NY security improvements that qualify for small business security tax benefits.

Security cameras

You can qualify for the New York State Security Tax Credit by purchasing a security camera system. By investing in retail security cameras and installing them at key points around your store, small businesses in New York can secure tax credit grants to improve overall security. This technology can help increase situational awareness and let you know if there is a security threat, such as a break-in attempt or a potential theft.

Security cameras are also proven deterrents as their presence has made criminals think twice and move away from committing their crimes. In addition, advanced security camera solutions can integrate with wider security systems, such as retail access control technology and alarm setups, to improve overall security operations and enhance the speed of response to incidents.

In the event of an incident, the evidentiary footage captured by the security cameras can help expedite investigations and increase the chances of prosecution and the potential for restitution. Commercial security camera systems can be equipped with video analytics technology to help quickly identify potential suspects and track patterns. Purchasing a new security camera system or adding new cameras to an existing solution is an effective way to combat theft for small businesses and one that qualifies for the New York State Security Camera Tax Credit.

Access control systems

Another effective solution that can improve security for small businesses and qualify for the NY Retail Security Tax Credit grants are access control systems. This type of technology helps users secure their premises from unauthorized individuals. In a retail setting, an access control system is particularly beneficial for helping secure staff-only areas, such as the stock and break rooms, and the entire facility during closing hours. It can also aid with loss prevention, allowing only specific users entry to areas with valuable merchandise.

Should an individual or a group attempt to gain unauthorized access to a restricted area or break into the store, the retail access control system will alert the security team to the event. If integrated with security cameras and alarm technologies, this comprehensive security solution will provide the necessary information to respond immediately and the evidence to support the investigation.

Alarms

Purchasing alarm systems qualifies as security improvements by New York State and enables retailers to seek NY small business security tax credit funding. Commercial alarm systems and sensors can be an effective tool in your NY shoplifting security plan and integrate with your access control and video security systems to enhance situational awareness.

Should a thief attempt to leave the store without paying for merchandise, the sensors at the store’s exit will be triggered. This will initiate an audible alarm that will alert security personnel to the incident to stop the thief from leaving with the stolen merchandise. Additionally, intrusion alarm systems can provide an additional layer of security, notifying businesses of break-in attempts and acts of vandalism in real time.

Locking or hardening mechanisms

Security starts at the perimeter, and small retail stores and businesses must secure their doors and windows effectively. By implementing strong storefront door locks or supporting the lock system with additional mechanisms, small businesses can keep unauthorized individuals from entering the store and better protect valuable merchandise. Investing in locking or hardening mechanisms qualifies as a retail theft prevention measure that enables the business owner to apply for New York small business security grants from the state security budget.

Perimeter security lighting

Perimeter security lighting is another qualifying retail theft prevention measure that enables small businesses to apply for the NY Retail Security Tax Credit 2024 – 2025. Greater visibility leads to enhanced security, as dark areas are prone to criminal activity.

Better indoor and outdoor lighting helps improve the visibility of scenes through your security cameras and provides onsite staff with enhanced situational awareness. This improvement in perimeter security awareness means emerging threats and potential thieves can be spotted in time.

Security officers

Hiring security officers as part of your shoplifting prevention plan is a qualifier for the NY Retail Security Tax Credit. Security guards aren’t just a visual and physical deterrent for criminals; they can also support efforts to enhance overall situational awareness and provide valuable insights from experience, such as knowledge of tactics used by criminals to steal merchandise and identify well-known thieves before they enter the store.

The benefits of investing in security systems

Security technology is essential to running a safe and successful business. From security officers to powerful video security cameras, these solutions are no longer a nice-to-have but a need-to-have. There are numerous benefits to investing in security for your small business, and below, you will find the most important.

Prevent shoplifting

Improve store security and prevent shoplifting by investing in security cameras, access control or security guards. The presence of security solutions is a deterrent against shoplifters, and if an incident of theft occurs, the evidence captured by the security technology and testimony from guards could help prosecute responsible parties. As a result of reduced shoplifting and increased security, small businesses can reduce retail shrinkage, helping to save money, improve profitability and offer a safer shopping experience.

Safeguard employees

The safety of your employees is paramount, and investments in improving store security can offer a safer environment. Technologies such as security cameras, access control and perimeter lighting can help deliver peace of mind as their presence and security features will stop potential criminals from jeopardizing the safety of your staff.

Combat liability claims

Should a criminal or visitor to your store file a liability claim against your business, it is crucial that you have technology in place to support your case, especially in the event of a false claim. Footage from security cameras is an effective way to deal with false liability claims as it can help disprove the claimant’s version of events, helping you avoid costly penalties and reputational harm.

How to maximize the NY small business security tax benefits 

If a business is eligible, the NY Retail Security Tax Credit can help alleviate expenses on retail theft prevention measures, such as installing security cameras, access control or hiring security officers. But how can your business make the most of the New York State small business tax credit for security camera systems, perimeter lighting and locking mechanisms?

Identify your security challenges: Whether an increase in theft, workplace violence or vandalism, it is important to formulate a plan to help your business address its security challenges. 

Perform a security audit: Scan your current security operations and identify weaknesses within the strategy. With the help of a security professional, you can understand the areas that require improvements to help overcome your business’s security challenges. 

Speak with a security expert: Contact a security professional or commercial security system installer who can provide detailed information on the solutions you can adopt to overcome security vulnerabilities. With a better understanding of what security enhancements you can implement, you’re better positioned to seek the right solution for your business.

Find the right solution: Research security technology companies that offer the type of solution you’re looking for. Collecting quotes and analyzing the different capabilities will help your business find the right solution and make the most of the NY Retail Security Tax Credit.

Conclusion

For the city and state, the New York small business Retail Security Tax Credit for camera technology and other security solutions will be a welcome initiative for small business owners. By alleviating some of the expenditure on the qualifying security improvements stated earlier in this guide, New York State supports small businesses to combat shoplifting and better protect their merchandise, staff and property.