Ask Your Representative to Cosponsor Legislation to Make Provider Relief Funds Non-taxable
In response to the Public Health Emergency (PHE), Congress earmarked money for Provider Relief Fund grants as well as created and modified the Paycheck Protection Program (PPP). These programs were enacted to support not only the healthcare industry, but also small businesses which are the engine of the economy.
Through the advocacy of PPS, APTA, and other stakeholders, the forgiven PPP expenses are now able to be deducted as business expenses. However, we have not yet been able to overcome the IRS’ position that the provider relief grants are taxable. PPS has been lobbying Members of Congress and Congressional leadership to fix this issue, but your legislators also need to hear from you—their constituents—about what they need to do to support you, your employees, and your small business.
Use this template (or your customized link via the APTA Action Center) to thank your lawmakers for creating the provider relief funds as well as acting to provide tax relief for those who received a PPP loan, while also reminding them that these economic supports must be tax-free in order to provide the maximum impact.
New to engaging with your lawmaker or need a refresher? Check out these tips for advocacy.
Thank you for your continued advocacy. Together we can make a difference!
If you are on social media, follow up your request with a tweet or Facebook post tagging your legislator as well as PPS using #PPSAdvocacy.
For information on PPS’s legislative priorities and activities, visit the Advocacy section at www.ppsapta.org
Subject line: Provider Relief Funds have been a lifeline, but taxing them diminishes impact. Please help.
Dear Representative __________,
Thank you for passing legislation in response to the PHE that provided healthcare providers and small business owners access to much-needed capital. Without the Provider Relief Funds and the Paycheck Protection Program (PPP) I might have had to close my doors. As a small business owner, I am truly appreciative.
I am a physical therapist in private practice and a member of the Private Practice Section of the American Physical Therapy Association. My outpatient therapy clinic is located in your district. My small business of therapists and support staff is a vital part of our local economy. The programs enacted and modified over the past year have helped us keep serving our community and continue to provide our patients with access to safe, quality care throughout the COVID-19 crisis.
However, taxation of these relief programs reduces the economic impact of these funds. Access to truly tax-free grants is still critical for my businesses. In December 2020 the law was changed to allow forgiven PPP expenses to be deductible business expenses, but the taxation of the Provider Relief Fund (PRF) was not addressed.
Please cosponsor the bipartisan Eliminating Provider Relief Fund Tax Penalties Act (H.R.2079) to ensure that PRF assistance will not be taxable and expenses attributable to PRF assistance will be also treated as tax deductible. Doing so will align the tax treatment of the PRF with the forgiven expenses of the PPP loans. Should these grants be tax-free, they will be more effective tools to reimburse for healthcare related expenses or lost revenues attributable to COVID-19.
I ask for you to support this legislation which will override the IRS ruling and support small businesses.
Member, Private Practice Section of the American Physical Therapy Association
[Practice phone number]