President Biden’s In plan has removed an important tax credit designed to help thousands of businesses retain workers and grow business. The Employee Retention Tax Credit (ERTC) awarded small and midsized businesses up to $28,000 per employee for the 2021 tax year.
But the recently passed Infrastructure Investment and Jobs Act terminated the ERTC three months early, making wages paid after Sep. 30 ineligible for the credit, the National Automatic Merchandising Association reported. NAMA had been advocating vigorously to protect access to the ERTC for the fourth quarter, which it estimates would have been about $196 million in assistance for the convenience services industry alone.
NAMA was part of a broad coalition of advocates pressing Congress to follow through on its commitment to American small business owners by maintaining ERTC in the last quarter.
This weekend, NAMA president and chief executive Carla Balakgie issued the following statement regarding passage of the Infrastructure Investment and Jobs Act:
“NAMA commends final passage of much needed investment our nation’s infrastructure to repair roads and bridges. This historic legislation also will expand broadband access to currently underserved communities, allowing convenience service operators to bring new, advanced technologies to those areas and enhance the consumer experience.
“Unfortunately, the package cuts off planned access to the Employee Retention Tax Credit a vital lifeline that operators are relying on to keep employees on the payroll as they recover from pandemic losses. NAMA calls on Congress to ensure fourth-quarter access to ERTC in the reconciliation package and keep the promise they made to small businesses.”