# Small Business PPE Tax Credit Act

This bill creates a tax credit to help small businesses, farms, nonprofits, and self-employed people pay for personal protective equipment like masks, gloves, hand sanitizer, and cleaning supplies during COVID-19 emergencies. Essentially, if you own a small business and spent money on PPE to keep your workplace safe, you could get money back on your taxes—up to $25,000 per year.

The credit applies to any business with 500 or fewer employees, as well as farms, franchises, and self-employed individuals working as independent contractors or sole proprietors. The bill specifically covers PPE purchases made during any year when the President declares a national emergency related to COVID-19. Eligible expenses include obvious items like masks and respirators, but also things like protective eyewear, gowns, hand sanitizer, cleaning products, and even the cost of installing equipment like ventilation systems to reduce virus transmission. The bill also prevents businesses from getting a double benefit—you can't deduct the same PPE expenses from your taxes if you're already claiming the credit.

One important limitation is that the credit only applies if the President has officially declared a national emergency or disaster related to COVID-19. This means the credit isn't available for PPE purchases made during normal times, only during declared emergency periods. Additionally, the bill includes a safeguard preventing anyone from claiming credits for counterfeit equipment or items sold in bad faith, which protects both businesses and the government from fraud.

Small Business PPE Tax Credit Act

Lawrence, Brenda L.

Small Business PPE Tax Credit Act This bill allows certain small businesses a tax credit for qualified personal protective equipment expenses, up to $25,000 in a taxable year. The entities eligible for such credit include farms, veterans organizations, and tribal business concerns. The bill defines qualified personal protective equipment expenses to include the cost of equipment for reducing the risk of coronavirus (i.e., the virus that causes COVID-19) transmission, including gloves, medical masks and protective gear, and cleaning supplies.