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Senators Hassan, Scott Lead Colleagues in Introducing Bipartisan Bill to Reinstate Critical Tax Relief for Businesses

WASHINGTON – U.S. Senators Maggie Hassan (D-NH) and Tim Scott (R-SC) are leading their colleagues in introducing bipartisan legislation to reinstate critical tax relief for businesses in New Hampshire, South Carolina, 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. Senators Hassan and Scott’s new bill enables small businesses and nonprofits who kept workers on payroll in the fourth quarter of 2021 to claim this tax credit. Senators Hassan and Scott are joined in introducing this bill by Senators Mark Warner (D-VA), Shelley Moore Capito (R-WV), and Ben Cardin (D-MD).

“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.”

“As businesses were forced to close during the pandemic, too many small business owners had to lay off employees,” Senator Scott said. “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.”

"The ERTC was a critical lifeline for hospitality businesses throughout New Hampshire that relied on the program to support employee retention during a historic workforce shortage,” said Mike Somers, President & CEO of New Hampshire Lodging & Restaurant Association. “Ending the ERTC before the omicron variant led to a rapid deterioration in business conditions in late December, unwittingly created additional financial hardships for businesses struggling to survive. We're grateful for Senator Hassan's support of its reinstatement, which will be an important tool for these businesses as they recover from the pandemic, supply chain issues, labor shortages, and inflation."

“We kept on our team, over 100 employees, through the worst of the pandemic and we are glad we did,” said Eric Roberts of Lui Lui Restaurants in Nashua and West Lebanon. “The employee retention tax credit was a life saver, as it flowed right through our restaurants and to their wages. However, too many restaurants are still struggling this winter and need this targeted support. We thank Senator Hassan for her leadership to restore the employee retention credit.”

"New Hampshire's nonprofit sctor is an integral part of pandemic recovery," said Kathleen Reardon, the CEO of the NH Center for Nonprofits. "Incentive like the Employee Retention Tax Credit will help nonprofits sustain the capable workforce that supports New Hampshire communities."
 

The bipartisan Employee Retention Tax Credit Reinstatement Act builds on Senator Hassan’s effort to get tax relief to businesses in New Hampshire and across the country. She successfully worked with Senator Richard Burr (R-NC) to include bipartisan legislation in the funding bill that passed into law in 2020 to allow eligible small employers to participate in the Paycheck Protection Program and claim the Employee Retention Tax Credit. Additionally, thanks to efforts by Senator Hassan, the American Rescue Plan provided payroll assistance through the Employee Retention Tax Credit to new small businesses started during the pandemic, which at the time could not access this tax relief. The American Rescue Plan also expanded the Employee Retention Tax Credit in order to further support businesses hardest hit by the pandemic following bipartisan calls led by Senator Hassan.

To read the bill text for the Employee Retention Tax Credit Reinstatement Act click here.

 

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