ASA Supports the Employee Tax Credit Reinstatement Act

ASA supports the Employee Retention Tax Credit Reinstatement Act (ERTC), which would reinstate the ETRC through the end of 2021, as it was originally written, to help struggling small businesses that were counting on the ERTC to help pay their employees through the end of the year.  The ERTC was scheduled to expire at the end of 2021 under the original COVID-19 relief legislation, but the recently enacted Infrastructure Investment and Jobs Act (IIJA) disallowed this credit for the fourth quarter of 2021. While the IIJA did not become law until the fourth quarter of the year, many small businesses continued to take the tax credit into the fourth quarter as allowed under the previous law, and now face a retroactive tax increase and a complex, frustrating process in reconciling the credit.