Employee Retention Tax Credit Ends Early
A provision tucked into the bipartisan infrastructure bill signed into law this week by President Biden retroactively moved up the expiration of the Employee Retention Credit (ERC) to Oct. 1, 2021.The ERC had been scheduled to remain in effect through Dec. 31, 2021.
The CARES Act implemented the ERC last spring to provide eligible businesses with relief made necessary by COVID-19. Congress subsequently expanded eligibility and allowed the credit to be claimed alongside a Paycheck Protection Program loan, but the credit never saw widespread utilization.
Subsequent IRS guidance caused more confusion for business owners with its controversial treatment of wages paid to the majority owner and their relatives.
If you are affected by this early end, NAHB recommends talking to a tax professional you trust.
NAHB is providing this information for general information only. This information does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind nor should it be construed as such. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers.
Latest from NAHBNow
Jul 25, 2025
NAHB's Student Chapters Helped Give Her Confidence to Pivot CareersZhetique Gunn's early exposure to building and problem-solving has led to national recognition and a city-level impact as an urban planner in Washington, D.C.
Jul 24, 2025
Federal Court Upholds New York State Gas BanThe federal court for the Northern District of New York on July 23 upheld New York state’s “gas ban” legislation. New York’s legislation is the first statewide law that restricts natural gas use in new buildings, effectively banning gas stoves and other fossil fuel appliances in most new construction starting in 2026.
Latest Economic News
Jul 25, 2025
Market Share of 5,000+ Square Foot New Homes Started Declines in 2024In 2024, there were 24,000 homes that exceeded 5,000 square feet, equating to a 2.3% market share of all new homes started. Both the number and market share for 5,000+ square foot homes experienced declines from 2023, according to the annual data from the Census Bureau’s Survey of Construction (SOC).
Jul 24, 2025
New Home Sales Hold Steady at a Relatively Tepid LevelChallenging affordability conditions, elevated interest rates and economic uncertainty continue to act as headwinds on the housing sector as many potential buyers continue to stay on the sidelines.
Jul 23, 2025
Existing Home Sales Retreat to 9-Month LowExisting home sales fell to 9-month low in June as home prices hit another monthly record high, according to the National Association of Realtors (NAR). Sluggish pace of sales suggest that higher mortgage rates and elevated home prices are continuing to sideline buyers, despite improved inventory conditions.