House introduces a bill to bring back the Employee Retention Tax Credit

Joanna Fantozzi

A bipartisan group of U.S. House of Representatives lawmakers introduced a bill on Tuesday that would bring back the Employee Retention Tax Credit, which expired on Sept. 30. The Employee Retention Tax Credit Reinstatement Act was introduced to Congress by Reps. Carol Miller (R-W. Va.), Kevin Hern (R-Okla.), Stephanie Murphy (D-Fla.), and Terri A. Sewell (D-Ala.)

“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,” Congresswoman Carol Miller said in a statement. “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.”

The ERTC was part of the original CARES Act passed in March 2020 and allowed businesses to receive up to $5,000 per employee in their tax refund if they can prove they had a revenue reduction in 2020. This boost for small businesses officially ended when President Biden signed the $1 trillion infrastructure bill into law in November, which backdated the ERTC claims to Sept. 30 instead of the end of the year.

Lawmakers in support of extending the ERTC have said that by ending the tax credit in September instead of the end of 2021, it has caused confusion for small businesses and will create chaos come tax season. They are urging Congress to pass the bill as soon as possible.

Related:President Biden’s $1 trillion infrastructure bill ends the ERTC for business owners

“As the pandemic has continued this year, ERTC has been an invaluable lifeline for restaurants struggling to recruit and retain workers,” Sean Kennedy, executive vice president of public affairs with the National Restaurant Association said in a statement. “Reinstatement of the employee retention credit will support small business restaurants, their employees and the communities they serve.”

There is no word yet on if or when the bill would be voted on in Congress.

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