After several stalls in the House, the $1.2 trillion infrastructure bill was passed by Congress very late Friday night (November 5, 2021) and now awaits the President’s signature. While there are relatively few tax-related provisions in this legislation, more extensive changes are included in the Build Back Better Act (the Reconciliation Bill).
One tax provision in the Infrastructure legislation that affects many businesses is the termination of the Employee Retention Credit (ERC) RETROACTIVE to September 30, 2021. Thus, the ERC is no longer available for the 4th quarter of 2021. As a result of this legislation, the maximum credit per employee during 2021 is reduced to $21,000 ($7,000 per quarter times 3 quarters). (See previous blog post “New Guidance on the Employee Retention Credit Benefits Many Companies.”)
Reach out to our team at MWB on any questions you may have on the Employee Retention Credit, the upcoming proposed tax changes, or any other issues.