Legislative Update: Employee Retention Credit (ERC)

February 9, 2021 – On February 8, 2021, Ways and Means Committee Chairman Richard Neal (D-MA) announced its “markup” of its portion of the $1.9 trillion COVID-19 relief package. A total of 12 Congressional committees are responsible for crafting various sections of what will ultimately become the final bill. But the Ways and Means Committee alone is responsible for provisions that comprise more than half of the total cost.

The Committee has broken its proposals into nine different areas. Within Subtitle G, part 6 proposes an extension of the Employee Retention Credit (ERC) originally passed in the CARES Act and expanded and extended in the Consolidated Appropriations Act of 2021. The CAA extended the program through the end of June 2021, and the proposed legislation would further extend the program through the end of the year.

The Committee will be meeting to finalize its proposals beginning on February 10 and ending on February 12.

Learn more about the Employee Retention Credit (ERC).

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