WASHINGTON—A coalition of 130 small business and key industry organizations, representing millions of workers and companies, has endorsed the bipartisan bill to expand the employee retention tax credit (ERTC) spearheaded by U.S. Representatives Stephanie Murphy, D-Fla., John Katko, R-N.Y., and Suzan DelBene, D-Wash. In a letter sent to House and Senate leaders, the coalition urged Congress to include ERTC expansion in any future legislative package that addresses the health and economic challenges posed by COVID-19.
“While we are encouraged that the country is in the early phases of reopening the economy, demand for products and services may not rebound for years. Therefore, an expansion of the Employee Retention Tax Credit is warranted so that companies can continue to retain employees and pay their healthcare benefits until more robust consumer spending returns,” wrote the coalition. The full letter can be found here.
The bipartisan JOBS Credit Act would enhance the ERTC, which incentivizes businesses of all sizes to retain their employees in active or furloughed status, rather than laying them off, so they continue to receive a paycheck, employer-sponsored health insurance, and other benefits. The ERTC expansion will help 6.1 million businesses keep 60 million workers tethered to their jobs, according to the Joint Committee on Taxation (JCT).
“The backing of this diverse coalition shows the broad, bipartisan support that exists for ERTC expansion,” said Murphy. “Expanding this pro-worker, pro-business provision is one of the most important steps Congress can take to help Americans during this pandemic, and I will keep working across party lines to make it happen.”
The members of the coalition signing the letter include the Aeronautical Repair Station Association, AICC, The Independent Packaging Association, American Apparel & Footwear Association, American Beverage Licensees, American Council of Engineering Companies, American Dental Association, American Farm Bureau Federation, American Frozen Food Institute, American Gaming Association, American Home Furnishings Alliance, American Hotel and Lodging Association, American Institute of Architects, American Lighting Association, American Mold Builders Association, American Rental Association, American Society of Travel Advisors, American Subcontractors Association, American Supply Association, American Veterinary Medical Association, Asian American Hotel Owners Association, Associated Builders and Contractors, Associated Equipment Distributors, Associated General Contractors of America, Association for Hose and Accessories Distribution, Association of the Wall and Ceiling Industry, Auto Care Association, Building Owners and Managers Association, CCIM Institute, Chemical Fabrics & Film Association, Coalition of Franchisee Associations, Commercial Food Equipment Service Association Inc., Construction Industry Round Table, Convenience Distribution Association, Eastern States Hospitality Coalition, Electronics Representatives Association, Equipment Marketing & Distribution Association, Foodservice Equipment Distributors Association, Franchise Business Services, Global Cold Chain Alliance, Golf Course Superintendents Association of America, Heating, Air-conditioning, & Refrigeration Distributors International, Independent Bakers Association, Independent Community Bankers of America, Independent Electrical Contractors, Institute of Real Estate Management, International Association of Plastics Distribution, International Foodservice Distributors Association, International Franchise Association, International Housewares Association, International Council of Shopping Centers, Irrigation Association, ISSA – The Worldwide Cleaning Industry Association, Main Street Alliance, Manufactured Housing Institute, Metals Service Center Institute, National Association for the Self-Employed, National Association of Chemical Distributors, National Association of Electrical Distributors, National Association of Home Builders, National Association of Professional Insurance Agents, National Association of REALTORS®, National Association of the Remodeling Industry, National Association of Theatre Owners, National Association of Trailer Manufacturers, National Association of Wholesaler-Distributors, National Association of Women Business Owners, National Automatic Merchandising Association, National Automobile Dealers Association, National Beer Wholesalers Association, National Club Association, National Community Pharmacists Association, National Confectioners Association, National Cotton Council, National Council of Chain Restaurants, National Electrical Contractors Association, National Electrical Manufacturers Representatives Association, National Employment Opportunity Network, National Federation of Independent Business, National Fisheries Institute, National Franchisee Association, National Independent Automobile Dealers Association, National LGBT Chamber of Commerce, National Marine Distributors Association, National Mining Association, National Propane Gas Association, National Ready Mixed Concrete Association, National Restaurant Association, National Retail Federation, National Roofing Contractors Association, National RV Dealers Association, National Small Business Association, National Tooling and Machining Association, North American Association of Food Equipment Manufacturers, North American Die Casting Association, Outdoor Industry Association, Outdoor Power Equipment and Engine Service Association, Pet Industry Distributors Association, Petroleum Equipment Institute, Petroleum Marketers Association of America, Polyisocyanurate Insulation Manufacturers Association, Precision Machined Products Association, Precision Metalforming Association, Professional Beauty Association, Promotional Products Association International, Retail Industry Leaders Association, Secondary Materials and Recycled Textiles Association, Security Hardware Distributors Association, Small Business & Entrepreneurship Council, Small Business Council of America, Small Business Legislative Council, Small Business Majority, Small Business Roundtable, Society of Collision Repair Specialists, Society of Industrial and Office REALTORS®, Specialty Equipment Market Association, Spray Polyurethane Foam Alliance, SPRI, The Association For Manufacturing Technology, The Institute of Internal Auditors, The Real Estate Roundtable, Tile Roofing Industry Alliance, Tire Industry Association, Transportation Intermediaries Association, Travel Goods Association, Travel Technology Association, U.S. Travel Association, United Fresh Produce Association, Washington Retail Association, Wholesale Florist and Florist Supplier Association, and the Wine & Spirits Wholesalers of America.
Other organizations that have endorsed ERTC expansion include the Business Roundtable, the International Association of Amusement Parks and Attractions (IAAPA), the Latino Hotel Association, the National Association of Black Hotel Owners, Operators & Developers, the National Association of Manufacturers, the National Multifamily Housing Council, the National Apartment Association, the U.S. Black Chambers, Inc, and a consortium of 22 non-profit education organizations.
The JOBS Credit Act was included in the House-passed HEROES Act in virtually identical form. More information on the bipartisan ERTC expansion bill can be found here.