Senator Michael Testa’s legislation that would provide a COVID-related tax benefit to the state’s small businesses was advanced today by the Senate Budget and Appropriations Committee.
Small businesses that invested money to remain open during the Governor’s COVID restrictions could qualify for a tax break under Sen. Michael Testa’s legislation. (©iStock)
Testa’s bill, S-4254, gives businesses with fewer than 50 employees a tax benefit to help compensate them for the cost of complying with the Governor’s COVID-19 executive orders.
“Small businesses across the state took a beating during the pandemic,” said Testa (R-1). “The Governor’s orders forced thousands of enterprises to close their doors to customers while the ‘big box stores’ were able to continue with business as usual. The expenses for meeting Murphy’s constantly changing restrictions crippled businesses that tried to do the right thing by investing in the equipment and guidelines ordered by Trenton, and subsequently struggled to remain solvent. This bill will provide badly needed relief for employers that have remained in business.”
Under the bill, qualifying businesses would receive a “bonus depreciation” allowance of up to $150,000 for expenses resulting from compliance with health and safety requirements imposed by Murphy’s executive orders.
“The state economy continues to sputter, with 6.6 percent unemployment rate, the fifth highest in the nation,” Testa said. “This bill is a necessity if we hope to kickstart the recovery our residents are counting on.
“Many small employers continue to fight for survival,” Testa continued. “This financial boost will help prevent even more bankruptcies and layoffs and put businesses in a position to get back on their feet.”
Related Facebook Post: