Ways and Means Republicans Introduce Healthy Workplace Tax Credit


WASHINGTON—Ways and Means Republicans are introducing a new way to help businesses safely and responsibly reopen our economy and protect the health and well-being of workers with the Healthy Workplace Tax Credit introduced by Rep. Tom Rice, R-S.C.

The Healthy Workplace Tax Credit will help businesses reopen safely and restore worker and customer confidence. Here’s how:

  • Encourages and enables businesses to take the recommended steps to prevent the spread of COVID-19 in their workplaces. 
  • Provides a refundable tax credit against payroll taxes for 50% of the costs incurred by the business for COVID-19 testing, personal protection equipment (PPE), disinfecting, extra cleaning, and reconfiguring workspaces. 
  • Is limited to $1,000 per employee for a business’s first 500 employees, $750 per employee for the next 500 employees, and $500 for each employee thereafter.

Rep. Tom Rice, R-S.C., said: “The coronavirus pandemic is impacting every American. As we continue to safely reopen, business owners will have to take unprecedented measures to protect their employees and patrons. Keeping Americans safe while getting back to work is a top priority.  It’s important we reconnect workers to jobs and prevent more business closures. Our healthy workplace tax credit will support businesses as they reopen by incentivizing them to take extra precautions to protect the health of patrons and employees.”

Ways and Means Republican Leader Kevin Brady, R-Texas, said: “Americans need to see their doctors, go to the store, and work to provide for their families—but they need to do so confidently and safely. The Healthy Workplace Tax Credit is a key policy in the Ways and Means Republican Returning Safely to a Healthy Workplace Agenda that accomplishes just that. I’m thankful to Rep. Rice for introducing this bill.”

Example: A restaurant with 40 employees that spends $60,000 on PPE, testing, disinfecting, and plexiglass shields will receive a $30,000 tax credit against its payroll taxes. To the extent that the credit exceeds the restaurant’s employer side payroll tax obligations, the excess credit will be refunded to the restaurant.