Washington Retail welcomes a new bill in Congress that would provide businesses a tax credit to help defer safety-related costs they have faced to respond to the COVID-19 virus pandemic.
The measure by Representative Tom Rice, (R-S.C.) would provide a refundable tax credit against payroll taxes for 50 percent of costs incurred by businesses for COVID-19 testing, PPE, disinfecting, extra cleaning and reconfiguring workspaces. The credit is limited to $1,000 per employee per quarter for a company’s first 500 employees, $750 for the next 500 and $500 for each employee thereafter.
A 40-employee retail store or restaurant, for example, that spends $60,000 on covered costs would receive a $30,000 tax credit. If the credit exceeds the business’s employer payroll tax obligations, the excess would be provided in the form of a refund.
If approved, the bill would provide financial help most needed by small businesses that lost substantial revenues when they were forced to close early in the pandemic to help curb the spread of the virus. You can read details in the bill here.