As Congress begins deliberations on additional financial assistance for individuals and companies impacted by the pandemic, the Natural Products Association (NPA) is pushing officials to include tax credits for natural products businesses facing steep reopening costs. In a new survey, NPA members projected spending an annual average of $13,595—with some expected to spend as much as $200,000—on COVID-19-related priorities including testing, personal protective equipment (PPE) and workplace changes to accommodate social distancing. Some companies indicated they were bracing for significant costs but were unable to calculate them due to the uncertainties of state-level government decisions on reopening.
“As Americans have turned to nutritional supplements to support their health and immune systems in this crisis, natural products businesses have truly been a lifeline. The downside is that this has come at great cost, and this survey reflects that,” said Daniel Fabricant, PhD, president and CEO of NPA. “It is vital that Congress include targeted tax credits for natural products businesses so they can continue to serve the American people and keep their doors open. We checked with our members on what they need most from the next stimulus package, and this was the #1 priority.”
To help businesses absorb the costs related to safely reopening, NPA is backing a proposal called the Healthy Workplaces Tax Credit, which provides a refundable tax credit against payroll taxes for 50 percent of the costs incurred by a business for increased COVID-19 testing, PPE, disinfecting, extra cleaning and reconfiguring work spaces to adhere to social distancing guidelines.
The Healthy Workplace Tax Credit will help businesses reopen safely while ensuring employee and customer confidence by:
• Providing a refundable tax credit against payroll taxes for 50 percent of the costs incurred by the business for COVID-19 testing, PPE, disinfecting, extra cleaning and reconfiguring workspaces until the end of the year.
• Encouraging and enabling businesses to take the recommended steps to prevent the spread of COVID-19 in their workplaces.
• Limiting this benefit to a maximum of $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, recognizing the disproportionate impacts of COVID-19 on small- and medium-sized businesses.
NPA has activated its grassroots network and is urging its members to contact Congress to support the Healthy Workplace Tax Credit. More information about NPA’s grassroots network can be found here.
