A temporary tax credit has been introduced in the U.S. House of Representatives that would help businesses offset the increased cost of cleaning and disinfecting due to COVID-19.
Proposed by Representatives Darin LaHood (R-IL) and Stephanie Murphy (D-FL) on May 29, the goal of the bipartisan Clean Start: Back to Work Tax Credit legislation is to support businesses as they work to ensure their facilities are properly cleaned, for the safety of employees and customers.
If passed, the tax credit could be applied towards expenses associated with cleaning procedures introduced to control the spread of COVID-19, including industry-recognized training and certification, contracting a cleaning company, and/or the purchase of necessary cleaning products, personal protective equipment (PPE), and other sanitary-related equipment.
Each business entity, including but not limited to franchisors or franchisees, and commercial property owners and management companies can claim a 50 per cent tax credit of up to $25,000, per location, up to a maximum of $250,000 per business entity. Eligible expenses must be made by March 31, 2021.
“COVID-19 is impacting every American,” said LaHood in a press release. “As stay-at-home orders begin to ease, businesses and workers are prepared to take unprecedented measures to get their livelihoods back on track. Getting folks back to work is essential to reinvigorating our economy, but it’s critical that we ensure the safety of workers and customers to prevent additional outbreaks. This bipartisan legislation will ensure that businesses can take extra precautions during this uncertain time and keep our communities safe.”
Murphy echoed LaHood’s comments, saying: “As our economy begins to gradually reopen, responsible business owners will want to do everything possible to safeguard their workers and customers from COVID-19. I am proud to join Congressman LaHood in proposing a temporary tax credit to help businesses afford cleaning services and supplies, which will protect public health and spur economic activity.”
John H. Barrett, the Worldwide Cleaning Industry Association’s (ISSA) executive director, also commented: “We thank Representatives LaHood and Murphy and our association partners for joining ISSA in supporting this commonsense proposal to ensure businesses can provide a safe and sanitary environment for their workers and customers. ISSA looks forward to continuing to work with members of the House and Senate to pass a bipartisan stimulus package that includes the Clean Start: Back to Work Tax Credit to give Americans the confidence and peace of mind to safely get back to work and revitalize our economy.”
Full text of the legislation can be read here.