Over the past two months, AGC of America, working with a coalition of other industry stakeholders, has worked with Congress to pass an extension of the Employee Retention Tax Credit (ERTC) through the fourth quarter of 2021. The ERTC was originally extended to run through the end of 2021 but was retroactively repealed for the fourth quarter after passage of the Infrastructure Investment and Jobs Act (IIJA), to expire after September 30. Because of the delay in passing IIJA some construction firms already claiming the credit in October 2021 face a potential tax penalty when they file their 2021 tax returns as a result.
Despite strong support from AGC, and many other groups, to include this “fix” in the full-year FY 2022 funding bill, unfortunately, Congressional leadership chose to exclude this provision (along with all other tax-related provisions) when the legislation was unveiled at 2:35 a.m., on March 9. AGC will continue to advocate for fixing this problem in future legislation.
For additional information, please contact Matthew Turkstra at email@example.com, or (202) 547-4733.