Bipartisan bill introduced to extend tax relief for small businesses during coronavirus
Businesses can qualify as a 'recovery startup business' or 'severely financially distressed employer'
FIRST ON FOX: A bipartisan group of lawmakers are moving to extend tax relief for small businesses during the coronavirus pandemic.
The Employee Retention Tax Credit (ERTC), which was included in last year's coronavirus relief package, was set up to encourage businesses to retain employees amid economic pressures associated with the pandemic. It was set up to extend into the fourth quarter of this year but the Infrastructure Investment and Jobs Act later disallowed that.
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The Employee Retention Tax Credit Reinstatement Act would reinstate the ERTC for that quarter in order to restore "certainty" to small businesses, according to Rep. Carol Miller, R-W.Va., who introduced the bill Tuesday.
"I’m pleased to lead my Ways and Means colleagues in introducing the Employee Retention Tax Credit Reinstatement Act," said Miller.
"By reinstating the ERTC, struggling small businesses can access one of the last remaining pandemic recovery programs to receive the help they need to replenish their workforce and get back on track. As we continue to emerge from this public health emergency, we must remember that small businesses in West Virginia and across the country still need our support. I urge Congressional leaders and President Biden to pass our bill into law as soon as possible to give these businesses and employees the certainty they need."
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Reps. Stephanie Murphy, D-Fla., Kevin Hern, R-Okla., and Terri Sewell, D-Ala., are co-sponsoring the legislation. According to Miller's office, many small businesses are facing a retroactive tax since they continued to take the credit in the fourth quarter.
Under the credit, businesses can qualify as a "recovery startup business" or "severely financially distressed employer," which requires that they've suffered at least a 90% year-over-year decline in gross receipts for a particular quarter.