130 Small Business and Leading Industry Groups Endorse Bipartisan Jobs Protection Bill
A coalition of 130 small business and major industry organizations, representing millions of workers and companies, has endorsed the bipartisan jobs protection bill to expand the Employee Retention Tax Credit (ERTC) led by Representatives Suzan DelBene (WA-01), Stephanie Murphy (FL-07), and John Katko (NY-24). Expanding the ERTC is estimated to keep nearly 60 million workers at 6.1 million businesses on payroll this year. In a letter to House and Senate leaders, the coalition urged Congress to include the ERTC expansion in any future COVID-19 relief package.
“While we are encouraged that the country is in the early phases of reopening the economy, demand for products and services may not rebound for years. Therefore, an expansion of the Employee Retention Tax Credit is warranted so that companies can continue to retain employees and pay their healthcare benefits until more robust consumer spending returns,” wrote the coalition.
The bipartisan JOBS Credit Act (H.R. 6776) enhances the existing ERTC, which will provide struggling businesses with funds to keep workers on payroll and receiving benefits. The bill increases the credit to cover 80% (up from 50%) of up to $45,000 in qualified wages this year (up from $10,000) if a business has seen a 50% decline in revenue. This means an employer could receive up to $36,000 per employee for the rest of this year using the expanded ERTC.
“This support from trade groups across a variety of business sectors shows that expanding the ERTC is now the consensus proposal to deliver more relief to workers and businesses. The expanded credit, which will provide upfront financial resources to businesses impacted by the COVID-19 recession, works in coordination with other relief programs and lasts through the end of the year,” said DelBene. “The promise of a quick and easy V-shaped recovery to the COVID-19 recession is a ship that sailed a long time ago because of the administration’s poor management of this crisis. Workers and businesses need the predictability this proposal offers. The Senate needs to move this bipartisan initiative forward now.”The JOBS Credit Act is the central jobs protection provision in the House-passed Heroes Act (H.R. 6800). The Heroes Act also provides a 50% refundable tax credit for operations costs including rent and utilities. More information on the bipartisan ERTC expansion bill can be found here. The full coalition letter can be found here.