Last week, a bipartisan group of senators introduced a bill that would retroactively reinstate the Employee Retention Credit (“ERC”) for the fourth quarter of 2021. The ERC was originally available as a refundable payroll tax credit for wages paid through December 31, 2021, however, the Infrastructure Investment and Jobs Act repealed the ERC for the fourth quarter of 2021. More information about the ERC can be found here.
The Senate bill was introduced by 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.) and has 54 cosponsors.
There seems to be bipartisan support for the bill. If passed, it would be welcome news for businesses that have continued to struggle to recover from the lingering effects of the COVID-19 pandemic. We will continue to monitor the bill’s status and provide updates if it is eventually passed.