HR 3625, the Employee Retention Tax Credit Reinstatement Act, left hanging — aims to get Congress to give back promised payroll tax credits as result of COVID-19 CARES Act

Aug 1, 2022

A long-shot effort by the National Newspaper Association to get Congress to give back promised payroll tax credits zeroed out by President Joseph Biden’s infrastructure bill was hanging without action on the Congressional agenda as Congress wrapped up its summer work.

HR 3625, the Employee Retention Tax Credit Reinstatement Act, would restore a credit for the fourth quarter of 2021 that many employers had relied upon as a result of the COVID-19 CARES Act. Businesses that had lost at least 20% of quarterly gross revenue year over year as a result of government shutdowns were eligible for refundable tax credits for as much as $26,000 per employee. Congress originally set eligibility for all four quarters of 2021, but then took back the final quarter to help pay for infrastructure, even though many businesses had already applied for the credit.

The NNA joined a coalition of more than 100 small businesses to restore that fourth quarter credit, but the bill has languished as other legislation, such as a bill to stimulate U.S. microchip manufacturing and reform of pharmaceutical prices, has taken priority.

Businesses that were eligible for credits from quarters 1-3 in 2021 could still be eligible to refile their tax returns to claim the credit. NNA urged publishers to consult their tax advisers.