Provides tax credits to owners of certain food and drink establishments for eligible health and safety expenditures made during COVID-19 pandemic.
Impact
The bill proposes a one-time, nonrefundable tax credit that would apply against the corporation business tax and the gross income tax, allowing eligible businesses to claim up to $1,000 for qualifying expenditures related to health and safety. The eligible expenditures include costs for personal protective equipment and other capital expenditures aimed at complying with health mandates. By enabling these tax credits, the bill aims to promote a safer environment in food and drink establishments, which have been significantly impacted by the pandemic.
Summary
Assembly Bill A3845, introduced in May 2022, aims to provide tax relief to owners of certain food and drink establishments, specifically alcoholic beverage manufacturers, bars, and restaurants, by offering tax credits for eligible health and safety expenditures incurred during the COVID-19 pandemic state of emergency. This initiative is designed to alleviate some of the financial burdens faced by these businesses while they adapt to heightened health and safety protocols mandated by executive orders during the pandemic.
Contention
Notable points of contention surrounding A3845 may involve discussions on the efficacy of tax credits as a means of supporting the restaurant and bar industry. Critics might question whether a $1,000 cap sufficiently addresses the extensive costs incurred by businesses during the pandemic. Additionally, there may be concerns regarding the method of implementation, including potential bureaucratic delays in reimbursing businesses or the administrative burden placed on local tax authorities for administering the credits.
Same As
Provides tax credits to owners of certain food and drink establishments for eligible health and safety expenditures made during COVID-19 pandemic.
Authorizes an income tax credit for certain businesses whose operations were interrupted as a result of the COVID-19 pandemic (Items #26 and 65) (EN DECREASE GF RV See Note)