On August 13, AGD sent a letter to Reps. Cindy Axne (R-IA) and Neal Dunn (R-FL) expressing support for their recently introduced legislation, the Eliminating the Provider Relief Fund Tax Penalties Act of 2020 (H.R.7819). The bill would ensure that dentists are not subject to taxes on aid provided through the CARES Act’s Provider Relief Fund (PRF). The bill also includes provisions to guarantees that expenses attributable to the PRF are tax-deductible.

In introducing the legislation, Rep. Axne said, “It is critical that every dollar of assistance to our health care providers can go as far as possible to keep people safe and healthy. Our bipartisan legislation will ensure that we aren’t shortchanging our providers by approving aid with one hand and taxing it with the other.”

The deadline for eligible dentists to apply for provider relief fund assistance is August 28.

Impact on General Dentistry: Many dental practices have faced significant financial impacts due to the COVID-19 pandemic, and continue to incur substantial costs related to implementing enhanced infection control measures. AGD strongly supports H.R.7819, as it guarantees that PRF aid does not add to dentists’ tax bills. This will enable them to realize the full value of their PRF benefit, and subsequently be empowered to keep their practices open, staff employed, and patients in good health.