Investing in services and products could lead to tax breaks in the near future
Could infection-prevention measures implemented now pay off in tax credits in the future? That’s a possible scenario, since legislation has recently been proposed to establish a “Safe and Healthy Workplace Tax Credit” under the HEALS Act which would provide businesses with the financial relief needed to implement prevention measures related to COVID-19.
If passed, your company could claim federal tax credits to offset costs related to expenses such as:
- Technology and services used to protect employees from COVID-19
- Equipment upgrades designed to improve infection control, such as new HVAC technology
- Reconfiguring and updating facilities, with the goal of achieving a higher level of cleaning and disinfection
- Hiring professional cleaning and disinfection service companies
- Providing personal protective equipment, hand sanitizer, and cleaning supplies to employees
- Reconfiguration of facilities to achieve social distancing
- Education and training related to transmission prevention
Eligible businesses would include a breadth of industries, from manufacturers and restaurants to retailers and office-based companies. Nonprofit service providers would be included as well, such as home healthcare providers. One important note is that the tax credit would be subject to limitations based on the number of employees in the workforce.
According to a press release from one of the bill’s contributors, Arizona Senator Kyrsten Siema, the tax credit is limited to two years and would provide slightly lower credits in 2021, which means this would be an especially good year to increase these investments.
Stay Tuned
As this legislation makes its way through the process, UG2 will keep you updated. There may be additional processes you can put in place to reap the benefits of these potential tax credits. Specifically, the UG2 Renew Program would fall under several of the items on the list above, since it protects employees from COVID-19, achieves a higher level of cleaning and disinfection, and offers potential equipment upgrades as well as improved infection control.
In the meantime, these kinds of investments can pay off in many other ways, such as improved health of your workforce or tenants, better operations throughout a building and/or campus, and a better bottom line overall.
Investing now may pay off in tax credits later. When it comes to health, safety, and productivity, your occupants will reap the benefits in the short term