ADA thanks lawmakers for bill calling for provider relief funding to be tax deductible

Washington — The ADA is thanking two members of Congress for introducing legislation to ensure dentists won’t be taxed on provider relief funding received during COVID-19.

In an Aug. 3 letter to Reps. Cindy Axne, R-Iowa, and Neal Dunn, R-Fla., ADA President Chad P. Gehani and Executive Director Kathleen T. O’Loughlin praised the legislators for HR 7819, the Eliminating the Provider Relief Fund Tax Penalties Act of 2020.

If enacted, the bill would make pandemic-related expenses attributed to Provider Relief Funds tax deductible. This proposal is something the ADA, and many other health care organizations support, as detailed in a June 25 letter to leaders of the U.S. House and Senate and members of the House Committee on Ways & Means and Senate Committee on Finance.

“After closing completely or limiting their practices to emergency-only dental care at the onset of the COVID-19 pandemic, dentists across the country have reopened their practices,” Drs. Gehani and O’Loughlin wrote. “In order to safeguard patients, their staff and themselves from the spread of COVID-19, dentists have implemented new infection control procedures and are utilizing enhanced personal protective equipment.”

“As you are keenly aware, the cost of these health and safety efforts are having a considerable economic impact on businesses. This bill would ensure that dentists, regardless of taxpaying status, will not be subject to taxes on aid provided through the Provider Relief Fund," Drs. Gehani and O'Loughlin added.

If this bill passes and becomes law, “by guaranteeing that relief funds do not add to the provider’s tax bills, dental practices [will be able to] utilize the full value of the benefit. Consequently, the reduction in tax burden would help dental practices stay open, retain their employees, and provide their patients with care,” the letter concluded.

The deadline for dentists to apply for provider relief is Aug. 28. To learn more and apply, visit cares.linkhealth.com.

For more information about the ADA’s advocacy efforts during COVID-19, visit ADA.org/COVID19Advocacy.