New York State Commercial Security Tax Credit

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. The next application period is slated to open in late summer / early fall of 2025.

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.

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. Questions may be directed to the Retail Theft Prevention Unit: RetailTheftUnit@dcjs.ny.gov.