PHILADELPHIA, February 4, 2021 – Councilmember David Oh (At-Large) today introduced legislation to create a new tax credit for Philadelphia businesses impacted by state and local COVID-19 restrictions. Under the legislation, businesses forced to close, reduce hours of operation, or limit customer capacity as a result of a public health order would be eligible for a tax credit in the amount of twenty percent of the business’s lost sales/receipts up to $20,000.
The legislation expands an existing “Distressed Business” tax credit in Section 19-2604 of the Philadelphia Code, which provides a tax credit for businesses negatively impacted by a public works project. The same credit would apply to businesses impacted by local public health restrictions.
Councilmember Oh says the City should recognize the many sacrifices made by COVID-19 impacted businesses to help slow the spread of the virus throughout the pandemic. Oh believes a COVID-19 specific tax credit would provide struggling businesses with a boost amid declining income and sales.
“Local businesses have navigated this public health crisis and evolving government mandates for nearly a year now,” said Oh. “They have complied – incurring significant losses in many cases – to keep the public safe. We should recognize this and look for ways to provide them with sorely needed relief.”
Read the legislation: COVID TAX CREDIT (FEB 2021).pdf
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