Addresses Bipartisan Infrastructure Bill Provision
On October 28, AGC along with others called on Congress to extend the Employee Retention Tax Credit (ERTC) through the end of the year. Earlier this year, the ERTC was extended through December 2021. However, the bipartisan infrastructure bill moved the expiration date of the credit forward to September 30, 2021. Because the House of Representatives failed to pass this bill in a timely manner, if the bill were to pass today some employers who claim the ERTC in the fourth quarter would face a retroactive tax increase. This outcome was never anticipated and could have a significant adverse impact on construction firms that are, by definition, operating with less revenue than they had a year ago or subject to a full or partial suspension of business operations due to a government order.
If you have any questions, please contact Matthew Turkstra, Director of Tax, Fiscal Affairs, and Accounting, at (202) 547-4733 or firstname.lastname@example.org.