Information provided by the office of Congressman Jimmy Panetta.
On June 15, Congressman Jimmy Panetta introduced the Safe Reopening Tax Credit Act, legislation that if approved would work to provide businesses and nonprofits a tax credit for expenses related to preventing the spread of COVID-19 as they reopen.
According to a press release, small businesses and nonprofits with up to 1,500 full-time-equivalent employees or who had less than $41.5 million in gross receipts in 2019 would be eligible for a 30% tax credit up to $15,000 on covered expenses through the end of the year. Covered expenses could include improvements such as plexiglass barriers, contactless point-of-sale systems, employee health education expenses, testing and virus monitoring expenses, personal protective equipment (PPE), and other expenses as determined by the Department of Treasury Secretary in consultation with the Department of Health and Human Services.
Eligible small businesses and nonprofits include those in the restaurant/hospitality sector, retail sector, arts/entertainment sector and recreation/attractions sector, in addition to social services such as food banks and informational destinations such as museums, libraries, zoos, and aquariums.
“In order for our hospitality and tourism industries on the Central Coast to reopen, they must take the necessary steps to keep customers and employees safe. Such precautions, on top of the economic hit they took from being shut down, significantly affects their budget,” Panetta said.“The Safe Reopening Tax Credit will allow our businesses to offset expenses related to preventing the spread of the virus. As a member of the Ways and Means Committee, I will continue to author and support such legislation that helps our employers and employees get back to business so that they can safely serve their customers.”