Senators Scott, Hassan Lead Colleagues in Introducing Bipartisan Bill to Reinstate Critical Tax Relief for Businesses
WASHINGTON – U.S. Senators Tim Scott (R-S.C.) and Maggie Hassan (D-N.H.) are leading their colleagues in introducing bipartisan legislation to reinstate critical tax relief for businesses in South Carolina, New Hampshire, and across the country.
The Employee Retention Tax Credit, which helps to cover costs for small employers who experienced revenue drops and kept workers on payroll, ended after the third quarter of 2021. This new bill enables small businesses and nonprofits who kept workers on payroll in the fourth quarter of 2021 to claim this tax credit. Senators Mark Warner (D-Va.), Shelley Moore Capito (R-W.Va.), and Ben Cardin (D-Md.) are also original co-sponsors.
“As businesses were forced to close during the pandemic, too many small business owners had to lay off employees,” said Senator Tim Scott.“Thankfully, the Employee Retention Tax Credit became a crucial mechanism by which these business owners could rehire or retain workers. Providing stability and certainty should be a key consideration in any legislation impacting entrepreneurs and workers, which is needed now more than ever as they power our economic recovery.”
“New Hampshire’s small businesses are the engine of our state’s economy, and this tax relief that I’m pushing for will further support our businesses and nonprofits that have continued to create jobs and keep workers on payroll,”Senator Hassan said. “The Employee Retention Tax Credit gave businesses a lifeline that they could use to keep their employees on payroll, and my bipartisan bill reinstates this important tax credit. I urge my colleagues to join us in supporting this commonsense legislation.”
“Small businesses have suffered tremendous setbacks throughout the pandemic and are still recovering from the fallout,” Senator Warner said. “As we continue to face an evolving virus and as the economy continues to bounce back, reinstating the Employee Retention Tax Credit will provide small businesses and non-profits in Virginia and across the country the support they need to retain or rehire workers lost during the pandemic.”
“Reinstating the Employee Retention Tax Credit retroactively for the fourth quarter of 2021 will reduce the burden for West Virginia small businesses and non-profits who were relying on the full use of the credit as originally intended by Congress,” Senator Capito said. “I’m proud to join my colleagues in introducing this legislation that will provide needed certainty for our small business owners across West Virginia.”
“The COVID-19 pandemic has had lasting effects on small businesses and nonprofits, including pressures on keeping workers employed,” said Senator Cardin. “I was proud to lead the establishment of the Employee Retention Tax Credit, which was extended and expanded through 2021. Since the credit was ended prematurely, we’ve heard from small businesses and nonprofits in Maryland who were counting on the credit’s support that have struggled to make ends meet. I’m proud to support this legislation and make good on our promise to support struggling employers.”
To read the bill text for the Employee Retention Tax Credit Reinstatement Act, click here.