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GOP Proposes Tax Credit to Refund Expenses Incurred Due To COVID-19

    • Healthy Workplaces Tax Credit Act will provide businesses with refundable tax credits
    • 50% of costs incurred due to pandemic covered through payroll taxes
    • Up to $1,000 per employee for small to medium-sized businesses

On Monday, U.S. Senator Rob Portman (R-OH) proposed the Healthy Workplaces Tax Credit Act, which would benefit businesses with refundable tax credits against payroll taxes. The plan is to incentivize a healthy and safe reopening of businesses across America with a refundable payroll tax credit to cover 50 percent of costs incurred from the pandemic’s increased safety measures. Lawmakers are currently discussing the bill, which is expected to be a part of the last round in a series of legislation for coronavirus relief.

The maximum benefit of the bill would be $1,000 per the first 500 employees, $750 for the next 500, and $500 for each employee thereafter. Costs related to diagnostic testing, disinfection and sanitization, protective equipment, and increased PPE are among those that would be covered by the Act.

The legislation follows a similar bill proposed last week by Rep. David Schweikert (R-ARIZ) to provide a Workplace Testing Tax Credit for companies looking to reopen their doors with required testing for all employees.

“A successful reopening of our economy is dependent on both employees and consumers feeling comfortable,” Portman said. “This tax credit will make that happen.”

For further information on how DSJCPA’s Coronavirus Response Team (CRT) can help you and your business, please visit our DSJCPA COVID-19 Information Center.



Devin McQuillan
Associate, Creative Solutions

516-541-6549 | Email

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