On February 10, Senators Maggie Hassan (D-N.H.), Tim Scott (R-S.C.), Mark Warner (D-Va.), Shelly Moore Capito (R-W.Va.), and Ben Cardin (D-Md.) introduced Ҵýapp-supported legislation to extend the employee retention tax credit (ERTC) through the end of 2021. The Senate bill mirrors Ҵýapp-supported legislation introduced in the House of Representatives last month by Reps. Carol Miller (R-W.Va.) and Stephanie Murphy (D-Fla.).
The ERTC, created as part of the CARES Act in 2020, was extended and expanded through the end of 2021, but was subsequently ended early (on September 30, 2021) after passage of the Infrastructure Investment and Jobs Act, which rolled back the credit as a “pay-for.” Unfortunately, due to the protracted negotiations between House and Senate leaders, the bill didn’t become law until well after September 30, meaning that some contractors who claimed the credit in the fourth quarter will face a retroactive tax increase absent Congressional action.
Ҵýapp is working with a coalition of over 70 trade associations to see that this legislation is passed in a timely manner. Upon introduction of the bill, Ҵýapp Chief Executive Officer , “This tax credit was key to helping many construction firms retain their employees during the pandemic. Many firms continued to struggle with project delays and cancellations, supply chain disruptions and other COVID-related challenges through the end of 2021 and reinstating the credit will prevent an unwanted retroactive tax increase on unsuspecting contractors and help preserve high-paying construction jobs going forward.”
If you have any questions or would like more information about the Employee Retention Tax Credit, please contact Matthew Turkstra, Sr. Director of Building and Infrastructure Finance, at (202) 547-4733 or matthew.turkstra@agc.org.