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.