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Chaparro & Danielsen Bill Allowing Tax Credit for Building Improvements to Reduce Spread of COVID-19 Passes Committee

With many changes having been – and still being made – to buildings in order to protect against the spread of COVID-19, two Assembly Democrats sponsor a bill that would provide a tax credit for expenses incurred for virus-related improvements to nonresidential and multifamily buildings.

The bill (A-5389) would apply the tax credit against the taxpayer’s corporation business tax (CBT) and gross income tax (GIT) for relevant expenditures between March 9, 2020 and January 1, 2023.

Examples of changes made to a building to help prevent the spread of COVID-19 include the installation of sneeze guards, infrared thermometers for visitor screening and UV lighting for disinfecting purposes. Upgrades to the building’s ventilation would also qualify for the credit.

Upon the legislation passing the Assembly Commerce and Economic Development Committee on Monday, Assembly sponsors Annette Chaparro (D-Hudson) and Joe Danielsen (D-Middlesex, Somerset) issued the following joint statement:


“The changes made to buildings throughout our state since the beginning of this pandemic have been crucial to helping protect residents from COVID-19. Upgrading HVAC systems to increase outside airflow and improve air filtration is just one of the ways in which business owners and landlords have helped prevent this deadly virus from spreading among building occupants. Whether the changes were voluntary or a mandatory requirement to safely reopen, taxpayers deserve a credit for the expenses they have incurred or will incur to make these necessary adjustments.”


The bill now heads to the Assembly Speaker for further consideration.