Senate bill would retroactively restore employee retention credit

ASTA applauded the introduction of a bill Thursday in the Senate that would retroactively restore the Employee Retention Tax Credit (ERTC) for the fourth quarter of 2021.

The ERTC, originally introduced in the Cares Act in 2020, provided a tax credit to employers of up to $7,000 per employee per quarter, if their business had been reduced by at least 20% compared to 2019. 

But with the passage of the Infrastructure Investment and Jobs Act last November, the ERTC expired on Sept. 30, 2021, instead of Dec. 31. ASTA has been lobbying for its restoration since. 

“Travel agencies and others who continue to be impacted by Covid were counting on this support in the fourth quarter of 2021 as they worked to bring back furloughed staff and rebuild their businesses,” ASTA president and CEO Zane Kerby said in a statement. “With Paycheck Protection Program funds having long since run dry and prospects for future relief uncertain, the ERTC is the only game in town for industries like travel that face a long Covid recovery window.”

The Senate bill was introduced by Sens. Maggie Hassan (D-N.H.), Shelly Moore Capito (R-W.V.), Ben Cardin (D-Md.), Tim Scott (R-S.C.) and Mark Warner (D-Va.).

The Senate bill is the companion to a House bill introduced at the end of last year. The House bill currently has 54 cosponsors.

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