U.S. Rep. Lawrence Reintroduces Bipartisan Small Business PPE Tax Credit Act

Press Release

Today, U.S. Representatives Brenda L. Lawrence (D-MI-14), Troy Balderson (R-OH-12), Mike Quigley (D-IL-05), and John Joyce, M.D. (R-PA-13) reintroduced the bipartisan Small Business PPE Tax Credit Act, legislation that would provide a tax credit, up to $25,000, for the purchase of personal protective equipment (PPE), for small businesses, 501(c)(3) non-profits, veterans' organizations, independent contractors, farmers, sole proprietors, and many more. The bill was first introduced on June 15th, 2020.

"Through no fault of their own, small businesses have been devastated by this pandemic. Some have had to make the difficult decision to close their facilities while others are struggling to stay afloat. Congress needs to step up and help," said Rep. Lawrence. "This bipartisan bill protects public health and supports our small businesses by providing them a tax credit for the purchase of PPE. They're doing everything they can to survive, and Congress should do everything we can to help them get through this crisis."

"As we safely reopen, Ohio's small businesses are facing atypical expenses--such as the purchase of protective gear to safeguard employees and customers--on top of recent unexpected declines in revenue," said Rep. Balderson. "Small businesses' resiliency throughout this crisis has been astounding. Providing these job creators with the relief of a tax credit will go far in helping them get back to business as usual."

"As small businesses across the country continue to contend with closures, limited capacity, and unprecedented shifts in operation, we must provide them with the tools necessary to operate safely," said Rep. Quigley. "Offering a tax credit for the personal protective equipment they need to keep their employees safe is a practical solution to both support small businesses and protect public health."

"In Pennsylvania and around the country, small businesses are not only the backbone of our economy, they are the heart of our communities," said Rep. John Joyce, M.D. "As America gets safely back to work, the small business community is working hard to protect both workers and customers. Providing a tax credit for personal protective equipment will help our small businesses ensure that they have the resources they need to stay open and keep our nation on the road to recovery."

QUALIFIED PERSONAL PROTECTIVE EQUIPMENT EXPENSES: Qualified equipment includes the installation or purchase of PPE intended to reduce the risk of COVID-19 transmission between people on the premises of the business of the taxpayer, including, but not limited to:

gloves, medical masks, N-95 respirators, eye protection, gowns and aprons, boots or closed-toe work shoes, cleaning detergents, hand sanitizers, cleaning products or tools;
retrofitting or installation of equipment; and
any other relevant expense the Secretary of the Treasury, in consultation with the Secretary of Health and Human Services, deems necessary.
MAXIMUM CREDIT: The credit shall not exceed $25,000 in any taxable year.

TAXABLE YEAR(S): This tax credit shall become available during any year in which the President of the United States, with respect to COVID-19, declares a national emergency under the National Emergencies Act or under Section 501(b) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act.

EFFECTIVE DATE: This bill shall apply to expenses made or incurred after December 31, 2020.

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