Bipartisan Effort to Expand Employee Retention Tax Credit Gains Coalition Endorsement

June 23, 2020 by Reece Nations
Bipartisan Effort to Expand Employee Retention Tax Credit Gains Coalition Endorsement

WASHINGTON — A bipartisan effort to expand the employee retention tax credit has gained a significant endorsement from a coalition representing 130 small businesses and key industry organizations. 

The bill, entitled the “Jumpstarting Our 5 Businesses’ Success Credit Act”, or JOBS Credit Act of 2020, aims to incentivize businesses to retain employees in active or furloughed status so they continue to receive a paycheck and other benefits.

Rep. Stephanie Murphy, D-Fla., is spearheading the legislation to retain the tax credit enacted by the United States’ first economic stimulus bill, the Coronavirus Aid, Relief and Economic Security Act, or CARES Act.

Joining Murphy in introducing the bill were Reps. John Katko, R-N.Y., Suzan DelBene, D-Wash., Brian Fitzpatrick, R-Pa., and Chris Pappas, D-N.H. 

“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,” the coalition’s letter to congressional leaders said. “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.” 

If enacted, the bill increases the credit to 80% from 50%, and increases the wage base to $15,000 per quarter for up to three quarters from $10,000 per year. Additionally, the JOBS Credit Act would also relax 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. 

The JOBS Credit Act was already a part of the already House-passed Health and Economic Recovery Omnibus Emergency Solutions Act, or HEROES Act. While the legislation intends to make up workers’ lost income from pandemic-related unemployment or furloughs and hinder further spread of coronavirus, it comes with a $3.4 trillion price tag. 

“The backing of this diverse coalition shows the broad, bipartisan support that exists for ERTC expansion,” Murphy said. “Expanding this pro-worker, pro-business provision is one of the most important steps Congress can take to help Americans during this pandemic, and I will keep working across party lines to make it happen.” 

The CARES Act is estimated to cost around $2.4 trillion over the next decade. Because of that bill, individuals with unemployment insurance gained an additional $600 in weekly payments and the Paycheck Protection Program lent up to $10 million to firms with fewer than 500 employees. 

Loans from this program will be converted into grants if the businesses used the funds to maintain workers’ salaries. The CARES Act also allocated $150 billion for state and local governments and a $46 billion allotment for the crippled airline industry.

Much of the bill’s intent is geared towards making it easier for citizens to stay home. Around one-third of spending from the HEROES Act would also go directly to state and local governments while the rest would be used to support safety net programs like unemployment insurance. 

“Democrats and Republicans in Congress, working with the Trump administration, have already managed to put politics aside and pass four bills to mitigate the health and economic effects of COVID-19,” Murphy said. “Congress can once again act in this ‘country-first’ spirit by expanding this bipartisan initiative to reduce layoffs, protect workers’ health insurance benefits, and help ensure a quick and robust economic recovery.” 

A+
a-
  • Brian Fitzpatrick
  • Chris Pappas
  • employee retention
  • John Katko
  • Stephanie Murphy
  • Suzan DelBene
  • tax credits
  • In The News

    Health

    Voting

    Economy

    The Inflation From Tariffs Economists Feared Begins to Emerge

    WASHINGTON (AP) — Inflation rose last month to its highest level since February as President Donald Trump's sweeping tariffs push up the... Read More

    WASHINGTON (AP) — Inflation rose last month to its highest level since February as President Donald Trump's sweeping tariffs push up the cost of a range of goods, including furniture, clothing, and large appliances. Consumer prices rose 2.7% in June from a year earlier, the Labor Department said... Read More

    US Stocks Move Lower and Pull S&P 500 Back From Its Record

    (AP) — U.S. stocks are down in early trading Friday, pulling the market back from all-time highs, as the Trump... Read More

    (AP) — U.S. stocks are down in early trading Friday, pulling the market back from all-time highs, as the Trump administration escalates its tariff threats against Canada. The S&P 500 was down 0.4% a day after setting a record high. The benchmark index is on pace... Read More

    Trump's Tariffs May Cast a Pall Over Rubio's First Official Trip to Asia

    WASHINGTON (AP) — Sweeping tariffs set to be imposed by President Donald Trump next month may cast a pall over his top diplomat’s first... Read More

    WASHINGTON (AP) — Sweeping tariffs set to be imposed by President Donald Trump next month may cast a pall over his top diplomat’s first official trip to Asia this week — just as the U.S. seeks to boost relations with Indo-Pacific nations to counter China’s growing influence in the region.... Read More

    Federal Debt, AI and a Warning for Future US Investment and Economic Security

    The United States is approaching an inflection point, one defined not by a single crisis, but by the confluence of... Read More

    The United States is approaching an inflection point, one defined not by a single crisis, but by the confluence of several slowly building threats to its long-term economic and national security. These threats include the growing federal debt that threatens the market for U.S. Treasurys, transformative... Read More

    Wall Street Mixed Early as Markets Shrug Off Trump's Tariff Deadlines

    (AP) — Wall Street was mixed in quiet trading early Tuesday as markets appeared to shrug off new tariff deadlines... Read More

    (AP) — Wall Street was mixed in quiet trading early Tuesday as markets appeared to shrug off new tariff deadlines for U.S. trading partners. Futures for the S&P 500 added 0.1% before the bell, while futures for the Dow Jones Industrial Average shed 0.1%. Nasdaq futures... Read More

    Fewer Americans Sought Unemployment Benefits Last Week as Layoffs Remain Low

    WASHINGTON (AP) — The number of Americans applying for unemployment benefits fell last week, the Labor Department said Thursday, a sign... Read More

    WASHINGTON (AP) — The number of Americans applying for unemployment benefits fell last week, the Labor Department said Thursday, a sign that companies aren’t cutting many jobs. Jobless claims for the week ended June 21 dropped 10,000 to 236,000, a historically-low level. The four-week average of claims,... Read More

    News From The Well
    scroll top