Recently, legislation has been introduced in the House of Representatives to prevent distributed provider relief funds from being taxed. The legislation, H.R. 2079, was introduced by Representatives Cindy Axne (D-IA), Brian Fitzpatrick (R-PA), and Neal Dunn (R-FL).
In describing the legislation Rep. Axne discusses the motivation behind the creation of the provider relief fund to provide “vital financial support to providers across the nation” and that the funds “helped keep health care providers open during the pandemic.” Taxing these funds runs counter to the purpose of the provider relief fund by lessening the positive impact. As a result of taxation, Rep. Axne states that providers receiving funds “may lose 21% or more of the benefit as compared to non-taxpaying providers.”
H.R. 2079 would remedy this seeming contradiction by ensuring that provider relief funds treated as taxable and related expenses would be treated as tax deductible.
“As our nation’s health care providers continue their tireless work to combat COVID-19,” said Rep. Axne, “Congress must be providing clear and consistent support; that support means guaranteeing all health care providers do not face burdensome taxability and tax deductibility limitations for the assistance they receive from the Public Health and Social Services Emergency Fund.”
The National Association for Home Care and Hospice is pleased to join over 35 other trade associations, professional societies, and other stakeholder groups in supporting this legislation.