“Consumer-facing businesses are confronting considerable new costs to make their locations safe for their customers and employees. This tax credit addresses many of those new expenses, including the costs of reconfiguring stores and restaurants to provide more social distancing, and ongoing costs for protective gear and cleaning. A tax credit is particularly helpful for businesses that are facing reduced sales after months of being closed and are encountering these costs as they take the steps necessary to assure their customers that it is safe to return”,  NRF Senior Vice President for Government Relations David French commented.

The Healthy Workplace Tax Credit would be created under legislation that was introduced by Representative Tom Rice, R-S.C., a member of the House Ways and Means Committee. The measure would provide a refundable tax credit against payroll taxes for 50% of costs incurred by businesses for COVID-19 testing, personal protective equipment (PPE), disinfecting, extra cleaning and reconfiguring workspaces. The credit has been limited to 1 000 US dollars per employee per quarter for a company’s first 500 employees, and it gradually lowers after that: 750 US dollars for the next 500 and 500 US dollars for each employee thereafter.

As an example, a 40-employee retail store or restaurant, spending 60 000 US dollars on the referred costs would receive a 30 000 US dollars tax credit. If the credit exceeds the business’s employer payroll tax obligations, the excess would be provided in the form of a refund.