Congress may vote in weeks on a bill that will extend tax credits for employees on staff during the year of the Covid 19 outbreak.
As scheduled, the Employee Retention Tax Credit Act will expire at the end of this calendar year.
The legislation as originally passed as part of the larger Coronavirus Aid, Relief, and Economic Security Act was signed into law by President Trump at the end of March 2020.
The ERTCA legislation was designed to encourage, through tax incentives, both businesses and nonprofits to keep workers on the payroll, particularly during a period when tens of thousands of businesses across the country were laying off staff due to the pandemic.
Various industry associations are urging Congress to extend the legislation, with the Associated Builders and Contractors noting its continued importance during a time when “many small businesses face the challenges of navigating a pandemic and ensuring their employees are compensated.”
A joint letter sent to the Congressional leadership by such disparate groups as the Associated General Contractors of America, the American Staffing Association, and the American Rental Association, additionally notes that “the need for passage has only grown more dire as employers face ongoing supply chain disruptions and increasing inflation, making the costs of operating insurmountable in many cases.”
The bill to keep the tax credit in place, otherwise known as HR 6161, is currently under review in the House Committee on Ways and Means.
By Garry Boulard
