Act Now to Save the Employee Retention Tax Credit (ERTC)
Buried in the $1 trillion bipartisan infrastructure bill released on August 1 are a series of measures intended to help pay for the bill. This includes several provisions that would claw back key COVID relief resources designed to help businesses continue their recovery process through the remainder of 2021. The bill is being considered in the Senate this week and will then go to the House for final passage in the Fall.
Of greatest potential concern to IAAPA members is a provision that would move up the expiration date of the Employee Retention Tax Credit (ERTC) by one quarter, from December 31 to September 30, 2021. This program created by the CARES Act provides a refundable tax credit equal to up to $7,000 per employee per quarter. With the Paycheck Protection Program (PPP) closed, many businesses are counting on ERTC support to help them with their recovery in 2021. Businesses have already made decisions based upon the availability of the ERTC. To limit its availability now would be unfair and devastating. You can find updates on the implementation of the ERTC here.
Given current political winds, eliminating this proposed claw back is unlikely. With that said, it is critical for us to try! We urge you to take a few minutes to contact your Senators and ask them to maintain the ERTC through 2021. Let your Senators know that this valuable tax credit is critical for your business and employees, and should not be ended early!
Act Now to Save the Employee Retention Tax Credit (ERTC)
Buried in the $1 trillion bipartisan infrastructure bill released on August 1 are a series of measures intended to help pay for the bill. This includes several provisions that would claw back key COVID relief resources designed to help businesses continue their recovery process through the remainder of 2021. The bill is being considered in the Senate this week and will then go to the House for final passage in the Fall.
Of greatest potential concern to IAAPA members is a provision that would move up the expiration date of the Employee Retention Tax Credit (ERTC) by one quarter, from December 31 to September 30, 2021. This program created by the CARES Act provides a refundable tax credit equal to up to $7,000 per employee per quarter. With the Paycheck Protection Program (PPP) closed, many businesses are counting on ERTC support to help them with their recovery in 2021. Businesses have already made decisions based upon the availability of the ERTC. To limit its availability now would be unfair and devastating. You can find updates on the implementation of the ERTC here.
Given current political winds, eliminating this proposed claw back is unlikely. With that said, it is critical for us to try! We urge you to take a few minutes to contact your Senators and ask them to maintain the ERTC through 2021. Let your Senators know that this valuable tax credit is critical for your business and employees, and should not be ended early!