The American Supply Association is part of a coalition of organizations in support of H.R. 676, the JOBS Credit Act of 2020. ASA and its coalition partners are asking that H.R. 676 be included in a future legislative package addressing COVID-19 and the economic harm caused by the pandemic.
The bipartisan bill, introduced in May by Representative Stephanie Murphy (D-Florida) along with original representative cosponsors John Katko (R-New York), Suzan DelBene (D-Washington), Brian Fitzpatrick (R-Pennsylvania) and Chris Pappas (D-New Hampshire), would expand upon the Employee Retention Credit. The ERTC was enacted as part of the CARES Act to provide businesses with a financial incentive to keep employees on the payroll where business operations were fully or partially suspended due to COVID-19-related closing orders, through no fault of their own, or where a company’s gross receipts significantly declined compared to the same quarter last year.
If enacted, the bill would enhance the ERTC in the following ways:
• Increase the credit to 80% from 50%;
• Increase the wage base to $15,000/quarter for up to three quarters from $10,000/year;
• Ease the qualifying rules for revenue decline;
• Include health benefits in the definition of qualified wages; and
• Allow businesses that receive a Paycheck Protection Program loan to qualify for the credit.
While the coalition is 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, the coalition notes.
The coalition adds enhancements to the credit contained in H.R. 6776 will help businesses and employees even more and it asks that it be included in future legislation enacted to address the COVID-19 pandemic.
Report Abusive Comment