The American Society of Travel Advisors is welcoming the introduction of the Employee Retention Tax Credit Reinstatement Act by Sens. Maggie Hassan (D-NH), Shelly Moore Capito (R-WV), Ben Cardin (D-MD), Tim Scott (R-SC) and Mark Warner (D-VA) in the U.S. Senate today.
The legislation would retroactively restore the ERTC for the fourth quarter of last year.
The ERTC was created by the CARES Act and provided a refundable tax credit of up to $7,000 per employee, per quarter for businesses whose revenue has been reduced by at least 20 percent as compared to 2019.
The ERTC was amended by the Infrastructure Investment and Jobs Act, which moved up the ERTC's expiration date by one quarter from December 31 to September 30, 2021. ASTA has been working to get this legislation restoring the ERTC for the fourth quarter through Congress.
"ASTA strongly supports the Employee Retention Tax Credit Reinstatement Act and commends Senators Hassan, Scott and all the original cosponsors for their leadership and for recognizing that, for many businesses, the pandemic is far from over," said Zane Kerby, ASTA President & CEO. "We hope that Congressional leadership recognizes this as well and ensures that the next appropriate legislation moving through Congress incorporates this bill. Travel agencies and others who continue to be impacted by COVID were counting on this support in the 4th quarter of 2021 as they worked to bring back furloughed staff and start to rebuild their businesses. With Paycheck Protection Program funds having long since run dry and prospects for future relief uncertain, the ERTC is the only game in town for industries like travel that face a long COVID recovery window."
ASTA members can use the grassroots portal to contact their legislators regarding the ERTC.
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