Small Business PPE Tax Credit Act
This bill allows certain small businesses a tax credit for the cost of qualified personal protective equipment, up to $25,000 in a taxable year. The entities eligible for such credit include farms, nonprofit organizations, veterans organizations, and Tribal business concerns. The bill defines qualified personal protective equipment to include the cost of equipment for reducing the risk of coronavirus (i.e., the virus that causes COVID-19) transmission. including gloves, facial masks and protective gear, and cleaning supplies.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7216 Introduced in House (IH)]
<DOC>
116th CONGRESS
2d Session
H. R. 7216
To amend the Internal Revenue Code of 1986 to provide a tax credit for
personal protective equipment to small businesses, non-profits,
independent contractors, veterans' organizations, and farmers, among
other entities, in any year in which the President declares a national
emergency relating to COVID-19.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 15, 2020
Mrs. Lawrence (for herself, Mr. Balderson, Mr. Quigley, Mr. Joyce of
Pennsylvania, Mr. Delgado, Mr. McKinley, Ms. Slotkin, and Mr. Stivers)
introduced the following bill; which was referred to the Committee on
Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide a tax credit for
personal protective equipment to small businesses, non-profits,
independent contractors, veterans' organizations, and farmers, among
other entities, in any year in which the President declares a national
emergency relating to COVID-19.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Small Business PPE Tax Credit Act''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) On January 21, 2020, the United States confirmed the
Nation's first case of the 2019 novel coronavirus, which
presents as the disease COVID-19.
(2) On March 11, 2020, the World Health Organization
upgraded the COVID-19 outbreak from global health emergency
status to a pandemic.
(3) On March 15, 2020, the Centers for Disease Control and
Prevention recommended a restriction on gatherings of 50 or
more people in the United States.
(4) Beginning in mid-March, the administration issued new
guidelines on the pandemic and called for nationwide social
distancing, among other precautions, to slow the spread of
COVID-19.
(5) On March 17, 2020, Dr. Anthony Fauci, in his capacity
as Director of the National Institute of Allergy and Infectious
Diseases, explained that ``social distancing is really physical
separation of people, wherein circumstances where there are
crowds, you remove yourself from very close contact.''
(6) Most Governors executed orders in States across the
country to close or restrict operations of business across
various industries on a temporary basis, in an effort to
promote social distancing, stymie the rapid spread of the
coronavirus, and flatten the curve so as not to overwhelm the
Nation's health care system's capacity.
(7) Those closures or operating limitations have caused
significant strain on America's small businesses in the
interest of public health.
(8) Small businesses are the engine of the United States
economy, comprising 99 percent of all business ventures in the
United States and accounting for half of the United States
economy.
(9) In order to safely resume full operations, these small
businesses need access to personal protective equipment; in
some cases, States are requiring employers and employees use
this personal protective equipment in order to allow public
entry.
(10) Due to the fiscal strain of pandemic-related losses on
these small businesses, they cannot and should not bear the
financial burden of acquiring personal protective equipment
without relief.
(11) Providing relief through a tax credit for the purchase
and use of personal protective equipment will directly support
small businesses returning to and exceeding pre-COVID-19
pandemic production levels.
(12) At a Small Business Committee forum on May 28, 2020,
Mr. Charles ``Tee'' Rowe, President and Chief Executive Officer
of America's SBDC, testified to the potential value of such
credits.
(13) Personal protective equipment tax credits will be
instrumental in safely and responsibly restarting the engine of
the United States economy.
SEC. 3. PERSONAL PROTECTIVE EQUIPMENT TAX CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 45U. PERSONAL PROTECTIVE EQUIPMENT CREDIT.
``(a) Allowance of Credit.--For purposes of section 38, the
personal protective equipment credit determined under this section for
the taxable year is an amount equal to the amount paid by an eligible
taxpayer in carrying on any trade or business for qualified personal
protective equipment expenses during such year.
``(b) Maximum Credit.--The credit determined under this section
with respect to any eligible taxpayer for any taxable year shall not
exceed $25,000.
``(c) Definition and Special Rules.--For purposes of this section--
``(1) Eligible taxpayer.--
``(A) In general.--The term `eligible taxpayer'
means--
``(i) a small business concern,
``(ii) any business concern (including an
enterprise that is engaged in the business of
production of food and fiber, ranching and
raising of livestock, aquaculture, and all
other farming and agricultural related
industries), non-profit organization that is
described in section 501(c)(3) and exempt from
tax under section 501(a), veterans
organization, or Tribal business concern that
employs not more than the greater of--
``(I) 500 employees, or
``(II) if applicable, the size
standard in number of employees
established by the Small Business
Administration for the industry in
which such business concern, non-profit
organization, veterans organization, or
Tribal business concern operates, or
``(iii) an individual who operates under a
sole proprietorship, as an independent
contractor, or as a self-employed individual.
``(B) Small business concern.--The term `small
business concern' has the meaning given such term under
section 3 of the Small Business Act (15 U.S.C. 632),
and also includes--
``(i) any business concern that employs not
more than 500 employees per physical location
of such business concern and that is assigned a
North American Industry Classification System
code beginning with 72,
``(ii) any business concern operating as a
franchise that is assigned a franchise
identifier code by the Small Business
Administration, and
``(iii) any business concern that receives
financial assistance from a company licensed
under section 301 of the Small Business
Investment Act of 1958 (15 U.S.C. 681).
``(C) Documentation requirements.--The Secretary
may establish such documentation requirements as are
necessary to determine eligibility for a credit under
this section.
``(2) Qualified personal protective equipment expenses.--
The term `qualified personal protective equipment expenses'
includes amounts paid or incurred--
``(A) for the purpose of reducing the risk of
Coronavirus Disease 2019 (COVID-19) transmission
between people on the premises of the business of the
taxpayer, including--
``(i) gloves, medical masks, N-95
respirators, eye protection, gowns and aprons,
boots or closed-toe work shoes, cleaning
detergents, hand sanitizers, cleaning products
and tools,
``(ii) retrofitting or installation of
equipment, and
``(iii) any other relevant expense the
Secretary, in consultation with the Secretary
of Health and Human Services, determines
necessary, and
``(B) at any time during a year in which, with
respect to COVID-19--
``(i) the President declares a national
emergency under the National Emergencies Act
(50 U.S.C. 1601 et seq.), or
``(ii) an emergency involving Federal
primary responsibility is determined to exist
by the President under the section 501(b) of
the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5191(b)).
``(d) Denial of Double Benefit.--No deduction shall be allowed
under this chapter for any amount taken into account in determining the
credit under this section.
``(e) Denial of Credit for Counterfeit Items.--No credit shall be
allowed under this section with respect to any item if the Secretary
determines such item to be counterfeit or sold or distributed in bad
faith.''.
(b) Credit Made Part of General Business Credit.--Subsection (b) of
section 38 of such Code is amended by striking ``plus'' at the end of
paragraph (32), by striking the period at the end of paragraph (33) and
inserting ``, plus'', and by adding at the end the following new
paragraph:
``(34) the personal protective equipment credit determined
under section 45U.''.
(c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 is amended by adding at the end
the following new item:
``Sec. 45U. Personal Protective Equipment Credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to expenses made or incurred after December 31, 2019, in taxable
years ending after such date.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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