PMAA Supports Tax Credit For Business Expenses Related To COVID-19

Last week PMAA joined other business groups in sending House and Senate Leadership a letter in support of bipartisan efforts to include a business tax credit for coronavirus protective measure language in the next stimulus bill.

There are multiple bipartisan bills (S 4178, HR 7079, HR 7222, HR 7216, and others not yet with a bill number) in both Chambers that include such a credit, including the Healthy Workplace Tax Credit introduced by Rep. Tom Price (R-SC) Wednesday.

A tax credit would ensure that businesses and nonprofits already struggling financially can cover a portion of these critical, yet unexpected expenses related to COVID-19.

As part of the business coalition, PMAA requested that the credit should cover cleaning and workplace safety-related costs, including staff training; applicable building certifications; purchasing necessary cleaning, sanitation, and disinfection-related products and equipment; as well as the hiring of a professional company to clean, sanitize, and disinfect, personal protection equipment, and other expenditures associated with maintaining a healthy physical workplace, including those necessary to comply with federal, state, and local guidelines, as well as industry best practices.

The structure of the tax credit should be neutral in terms of business type, based on estimated average increased costs—at least $25,000 per location, can be applied against qualified expenses incurred over at least the next nine months, and eligible for carryover (if general business credit) to the next year, where the taxpayer has a tax liability or refundability (if a payroll tax credit).

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