March 27, 2020
Both residential and commercial construction can continue in New Jersey. As of this writing, Governor Murphy has not yet changed his March 23 ruling on this subject. Some contractors in PA and NY are not as fortunate.
Governor Cuomo announced today that non-essential construction projects must be put on hold until further notice. Contractors on residential and commercial building projects are to stop working on job sites through April 21, 2020. Enforcement will be provided by the state, local and municipal governments. Contractors that fail to comply with this order could be fined up to $10,000 for each safety violation.
Emergency construction, which is described in the order as being “necessary to protect health and safety of the occupants, or to continue a project if it would be unsafe to allow to remain undone until it is safe to shut the site,” can continue. Projects may include roads, bridges, transit facilities, utilities, hospitals or health care facilities, affordable housing, and homeless shelters. These sites must still maintain social distancing practices.
Governor Wolf announce on March 19 that all non-essential business had shut down by March 21.
The list of non-essential business in Pennsylvania includes:
- Residential Building Construction
- Nonresidential Building Construction
- Utility Subsystem Construction
- Land Subdivision
- Highway, Street, and Bridge Construction
- Other Heavy and Civil Engineering Construction
- Foundation, Structure, and Building Exterior Contractors
- Building Equipment Contractors
- Building Finishing Contractors
- Other Specialty Trade Contractors
- Architectural, Engineering, and Related Services
Contractors in Pennsylvania who fail or refuse to comply with the governor’s orders will forfeit their ability to receive any applicable disaster relief and/or may be subject to other appropriate administrative action. Such action may include termination of state loan or grant funding, including Redevelopment Assistance Capital Project (RACP) grant funding and/or suspension or revocation of licensure for violation of the law.
Criminal charges that might be applicable, in Pennsylvania. The Department of Health is authorized to prosecute noncompliant entities for the failure to comply with health laws, including quarantine, isolation or other disease control measures. Violators are subject to fines or imprisonment.
We will continue to share more details as they become available. Feel free to contact any member of our team at (610) 828-1900 (PA) or (732) 341-3893 (NJ) with questions. Rich Higgins, CPA, managing principal – New Jersey office can be contacted at
Richard.Higgins@MCC-CPAs.com
. I can be reached at
Marty.McCarthy@MCC-CPAs.com
. As always, we are happy to help.
Stay safe,
Marty McCarthy, CPA, CCIFP
Managing Partner
McCarthy & Company
Source: The Tax Foundation and State of Pennsylvania. March 26, 2020.
Disclaimer: This alert is for informational purposes only and does not constitute professional advice. Information contained in this communication is not intended or written to be used as tax advice, and cannot be used by the recipient to avoid penalties that may be imposed under the Internal Revenue Code. We strongly advise you to seek professional assistance with respect to your specific issue(s).
