PPE and Safety Gear Expense Rules for Electricians

As a small electrical contracting business, you're likely familiar with the importance of prioritizing employee safety and well-being. However, managing the expense rules for personal protective equipment (PPE) and safety gear can be complex and time-consuming. To help you navigate this process, the IRS and OSHA provide guidelines on deducting these expenses on your tax returns. For example, the IRS allows you to deduct a portion of the cost of gloves, hard hats, and safety glasses as a business expense, provided they meet certain criteria. To document these expenses, keep accurate records of the date, location, and cost of each item, as well as any receipts or proof of purchase. Additionally, you may be able to deduct the cost of training or certification courses related to safety gear. For the bigger picture, see our guide to electrical contractor expense management software.

PPE and Safety Gear Expense Rules for Electricians

As an electrician, it's essential to understand the rules for deducting expenses related to personal protective equipment (PPE) and safety gear for your employees.

• Arc-flash suits
• Arc-rated face shields
• Class 0 and Class 2 insulated rubber gloves
• Leather protectors
• Hard hats
• Safety glasses
• EH-rated boots
• Lockout/tagout kits
• Voltage detectors

Specialized coveralls, hard hats, work gloves, safety shoes, and goggles that are unsuitable for everyday wear are also deductible.

When it comes to organizing arc flash protection, there are four PPE categories based on incident energy exposure:

• Level 1: Arc flash protection with a minimum arc rating of 1000V

Keep accurate records of the PPE and safety gear you purchase and use, including receipts, invoices, and maintenance records.

Additionally, you must follow specific safety guidelines and regulations, such as those set by OSHA. Consult the International Electrotechnical Commission (IEC) standards and OSHA regulations for more information.

PPE and Safety Gear Expense Rules for Electricians

For businesses, the cost of PPE can be tax-deductible if the expenses meet specific criteria. To qualify, the expenses must be both ordinary and necessary for the business. This means that the costs of PPE are not excessive and are required for the job.

• Is the PPE necessary for the work being done?
• Is the PPE suitable for the work and unsuitable for everyday wear?
• Is the PPE meeting work-clothing requirements?

For work clothing, it must be necessary for the work and unsuitable for everyday wear. A logo on a polo shirt doesn't automatically make it deductible; it must meet work-clothing requirements.

For travel away from home, the IRS has established specific rates for per diem expenses. As of October 1, 2026, travel expenses are subject to the high-low substantiation method, with rates varying by locality:

• High-cost localities: $329 per night for lodgings, $230 per day for meals and incidental expenses

For incidental expenses, the rate is $5 per day for CONUS (within the continental U.S.) or OCONUS (outside the continental U.S.) travel.

The de minimis safe harbor election allows eligible expenses to be deducted in the year purchased instead of being capitalized. To qualify, the expense must be $2,500 or less per invoice or item.

The IRS also sets annual mileage rates, which vary by quarter. For 2026, the rates are 72.5 cents per mile from January 1 to June 30 and 76 cents per mile from July 1 to December 31. OSHA standards require employees to use protective equipment that is appropriate for the body part and work, such as nonconductive head protection and eye or face protection.

NFPA 70E is an industry consensus standard that OSHA inspectors use as a benchmark. The IRS standard mileage rates are set annually by the IRS, with a mid-year adjustment in 2026 due to fuel price volatility. It is essential to check the IRS website or consult with a tax professional to determine the correct mileage rate for your specific situation.

Additionally, electricians must comply with specific safety regulations, such as those outlined in OSHA's Electrical Safety Standard (29 CFR 1910.28) and NFPA 70E.

To do this, you'll need to keep accurate records and follow specific guidelines.

This includes items like hard hats, safety glasses, earplugs, gloves, and respirators.

When documenting these expenses, make sure to keep a record of the date, location, and description of each item. You'll need to keep this information for at least three years in case of an audit.

To meet these requirements, you'll need to keep accurate records of all expenses, including receipts, invoices, and employee records. You may also need to consult with an accountant or tax professional to ensure you're meeting all the necessary requirements.

Additionally, OSHA requires electrical contractors to maintain a record of all employee training and certification, including the date, location, and type of training received.

Safety Regulations and Industry Standards

The electrical contracting industry is subject to various safety regulations and standards. The Occupational Safety and Health Administration (OSHA) sets federal regulations, while industry-specific standards like the National Fire Protection Association (NFPA) 70E are used as benchmarks.

One key standard is the Electrical Safety Standard (ESS) developed by the International Electrotechnical Commission (IEC). This standard outlines guidelines for electrical safety in the workplace, including the use of personal protective equipment (PPE) such as hard hats, safety glasses, and earplugs.

NFPA 70E, a standard specifically designed for electrical workers, provides detailed guidelines for workplace safety, including the use of personal protective equipment, electrical testing, and lockout/tagout procedures.

Additionally, the U.S. Department of Transportation's (DOT) Federal Motor Carrier Safety Regulations (FMCSRs) provide guidelines for employers operating motor vehicles, including requirements for PPE and safety equipment.

These regulations and standards vary by state or country, and changes occur periodically. It is essential for electrical contracting businesses to stay up-to-date on the latest regulations and standards to ensure compliance and maintain a safe working environment.

Varying rates: - M&IE rates for taxpayers in CONUS: $80 - M&IE rates for taxpayers in OCONUS: $86

Tax rules, limits and rates change. Confirm current figures with the IRS or your accountant before you file.