CIRT has joined a cross-section of businesses in supporting bipartisan legislation to improve and enhance the ERTC program. To this end, a bill has been offered by Reps. Stephanie Murphy and John Katko called: the JOBS Credit Act (H.R. 6776) to address this matter. Building on the ERTC provision included in the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136 (Section 2301)), the JOBS Credit Act would include a number of policy enhancements, such as:
- An expansion of the credit percentage from 50 percent to 80 percent of qualified wages;
- An increase of the per-employee limitation from $10,000 for all calendar quarters to $15,000 per calendar quarter (and an aggregate of $45,000 for all calendar quarters);
- A phased-in credit, which will allow employers with more than a 20 percent decline in gross receipts to be eligible for a portion of the credit; and
- Improved coordination between the ERTC and the Paycheck Protection Program so employers can be eligible for both programs, but with guardrails in place to prevent “double dipping.”
The CARES Act created an Employee Retention Tax Credit (ERTC) to help provide liquidity to employers trying to cope with the impact of government shut-down orders and declining revenue. The ERTC was a welcome aid for employers attempting to retain their workforce or hoping to be able to rehire furloughed employees when able to so; however, the initial ERTC provision was limited in the amount of credit provided, employer eligibility for the credit, and ability to use the ETRC and the PPP.
For details see the Coalition Letter.