Congress Ponders Eliminating Employee Retention Tax Credit
(Feb. 25, 2025) Congressional Republicans have identified doing away with remaining Employee Retention Tax Credit (ERC) payments as a potential way of helping meet their budget reduction targets. The elimination is projected to save up to $75 billion over 10 years. Members may recall that the ERC is a COVID-era relief program that provide tax credits to businesses that experienced a significant decline in gross receipts or were impacted by a government order that impacted operations in 2020 or 2021. While claims for 2021 can be filed until April 15th of this year, there are millions of filed claims that the Internal Revenue Service (IRS) is currently reviewing. This credit has been under scrutiny over concerns over fraudulent claims spurred by aggressive marketeers of the program. The credit has provided a valuable lifeline to some members, and we, along with LeadingAge National, are seeking to gauge how many members have pending ERC applications or quarters for which they are awaiting payment. Please let us know so that our national organization can gauge whether and how large of an issue the potential elimination may be to our members. We also encourage members concerned by the potential elimination to reach out to your U.S. Senate and House representatives to ask that they support preserving the ERC during budget deliberations.
Contact: Darius Kirstein, dkirstein@leadingageny.org, 518-867-8841