Easing the security burden

More security-related news coming out of New York for this week’s blog - this time on the state level - and significant enough that security integrators and small business owners in NY State should really take the time to read about these important developments that will help protect employees and merchandise.

Let me go back to April of this year, when the New York State legislature passed its annual budget measure for fiscal year 2025 which addresses multiple priorities and enacts key proposals from Gov. Kathy Hochul.

The measure included a new Retail Security Tax Credit, which for tax years 2024 and 2025 will provide assistance to small businesses for investing in necessary equipment to protect both their staff and their merchandise.

According to the Security Industry Association (SIA), retailers throughout New York State lose around $4.4 billion a year from various kinds of thefts.

The budget agreement includes the new tax credit as part of Gov. Hochul’s five-point policy plan aimed at fighting organized retail theft. This $5 million tax credit will help small businesses invest in added security measures such as cameras and alarm systems.

To help alleviate the burden on small businesses for additional security measures, the budget creates a $3,000 tax credit for any small businesses that spend the threshold amount of money on retail theft prevention measures.

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

• 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” is defined as 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.

These retail theft prevention measures include:

• 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 by Oct. 31 of each year.

Gov. Hochul’s significant investment in public safety was lauded by NYC district attorneys. Brooklyn District Attorney Eric Gonzalez said, “This legislation marks an important step in our ongoing efforts to ensure safety and security for New Yorkers.” Staten Island District Attorney Michael McMahon added, “Assisting small business owners with upgrading their store's security systems is a meaningful change that will pay dividends.”

Truly a significant development for New York business owners, workers and consumers, and one that they should take full advantage of. And for the integrators that install security systems in businesses throughout New York State, it would certainly be advantageous to leverage these tax credits for the benefit of their clients.

With the Oct. 31 deadline looming, and with the holiday season right around the corner, time to get those applications in to ensure a safer shopping experience for all New Yorkers.