# The FRESH AIR for Businesses Act: What It Does

This bill creates a tax credit to help businesses and nonprofits pay for improvements to their indoor air systems. Specifically, it offers employers a 50 percent tax credit on money they spend to install or upgrade ventilation systems, air filters, and air purifiers designed to reduce the spread of COVID-19 and other airborne diseases. Think of it as the government covering half the cost of these air quality upgrades.

The credit applies to several types of improvements. Businesses can get the credit for installing new heating and air conditioning systems with high-quality filters (MERV 13 or better), UV purification systems, or systems that provide fresh air circulation and zoning capabilities. They can also claim the credit for upgrading existing systems that don't meet these standards, or for purchasing standalone air cleaners, HEPA filters, and UV bulbs for their current systems. The catch is that each business location can receive a maximum of $15,000 in credits, and all spending must happen between February 2020 and the end of 2021.

Here's how the money works: employers can use the credit to reduce their payroll taxes (the taxes they pay on employee wages). If the credit is larger than the payroll taxes they owe in a quarter, the government refunds them the difference. The bill also waives penalties if businesses underestimate their payroll tax deposits because they're expecting this credit. Importantly, the bill prevents double-dipping—companies can't both claim the tax credit and deduct the same expenses on their regular taxes.

The bill excludes government agencies at all levels from using this credit, so it's designed specifically for private businesses and nonprofits. The Environmental Protection Agency is also tasked with creating a voluntary labeling system so businesses can easily identify which air systems meet the bill's standards.

Filtering and Retrofitting the Environment for Safe and Healthy Activities Indoors and Revenue (FRESH AIR) for Businesses Act

Bourdeaux, Carolyn

Filtering and Retrofitting the Environment for Safe and Healthy Activities Indoors and Revenue (FRESH AIR) for Businesses Act This bill allows employers a payroll tax credit in each calendar quarter through 2021 equal to 50% of the cost of qualified ventilation, zoning, and air filtration and purification expenses. This includes the purchase and installation of a heating, ventilation, and air conditioning system, updates to such systems, and the purchase of any air filter, air cleaner, or air purifier. The maximum amount of this credit for any employer may not exceed $15,000 for all calendar quarters. The bill requires the Environmental Protection Agency to establish a framework and guidelines for a voluntary label to certify that air pressure, ventilation, zoning, fresh air intake, purification, or filtration systems meet the standards established by this bill.