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According to ADA News, the organization worked with a bipartisan group of lawmakers to propose a tax credit of up to $25,000 to offset increased expenditures for Personal Protective Equipment.

Reps. Brenda Lawrence, D-Mich., Troy Balderson, R-Ohio, Mike Quigley, D-Ill., and John Joyce, R-Penn introduced HR 7216, the Small Business Personal Protective Equipment Tax Credit Act. While passage is by no means assured at this point, the bill would provide welcome relief for dentists across the country who have had to make significant expenditures to comply with new safety regulations and guidelines.

Funds You Can Use

According to the ADA release, “If enacted, HR 7216 would provide small businesses, including dental practices, with a tax credit up to $25,000 for the purchase of gloves, medical masks, N95 respirators, eye protection, gowns and aprons, boots or closed-toe work shoes, cleaning detergents, hand sanitizers, cleaning products and tools, as well as the retrofitting or installation of equipment.”

At this point, the full text of the bill has not been published, so it’s not clear whether the tax credit could be taken during 2020 or whether it would be applied to taxes payable in 2021. However, the congress.gov site has this summary:

To amend the Internal Revenue Code of 1986 to provide a tax credit for personal protective equipment to small businesses, non-profits, independent contractors, veterans' organizations, and farmers, among other entities, in any year in which the President declares a national emergency relating to COVID-19.”

The bill has been referred for consideration to the U.S. House Ways and Means Committee.

Offsets Are Good For Business

Depending on the expenses you incurred prior to reopening, you may have had to impose a surcharge on your patients to cover PPE and safety costs. Should this measure pass, you have some choices: recoup your expenditures in full or in part, or remove some or all of the surcharge you imposed.

If your finances permit, consider adjusting the surcharge. That’s something that your patients and prospects will respond favorably to, particularly at a time when many millions of people still haven’t returned to full-time employment… if they’re working at all. Patients who no longer have dental insurance will be particularly appreciative of any reduction in their out-of-pocket.

However, every dentist’s situation is unique, so there’s no hard and fast rule about which is the better option. 

There is a third option, though, and that’s to get more fee-for-service patients in your chairs who will cheerfully pay full freight for the services they want from the dentist they choose.

Getting more and better patients in our doctors’ chairs is what SmartBox has been specializing in since inception. If you’d like to explore that option, we invite you to schedule a Practice Growth Call.

Otherwise, keep checking this blog; we’ll keep you updated on further developments with the Small Business Personal Protective Equipment Tax Credit Act as information becomes available.


Written by Smartbox

SmartBox employs the best minds in dentistry to help you grow your practice. Our Practice Growth System™ is proven to help dentists in every market area across the country achieve predictable year-over-year growth.