Legislation sponsored by Senator Michael Testa that would help small businesses recoup some of the money invested to meet COVID requirements cleared the Senate today.
Testa’s bill (S-4254) would allow 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.
“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,” said Testa (R-1). “Small businesses across the state took a beating during the pandemic.
“The expenses of meeting Murphy’s constantly changing restrictions crippled employers that tried to do the right thing by investing in the equipment and guidelines ordered by Trenton, and subsequently struggled to remain solvent,” Testa noted. “This bill will provide badly needed relief for employers that have managed to remain 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.
“This bill is a necessity if we hope to kickstart the recovery our residents are counting on,” said Testa. “The state economy continues to sputter, with a 6.6 percent unemployment rate, the third highest in the nation.
“Many small employers continue to fight for survival. This financial boost will help prevent even more bankruptcies and layoffs and put businesses in better position to get back on their feet,” Testa continued.
The bill now awaits action in the Assembly on the final day of the session.