Retail

Omnibus 2022 budget won't restore employee retention tax credit

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March 9, 2022

Congress has reached bipartisan agreement on a $1.5 trillion omnibus package to fund the government, according to a report in The Hill.

Unfortunately, the omnibus budget does not include restoration of the Employee Retention Tax Credit, according to the National Automatic Merchandising Association.

"Although NAMA is disappointed that Congress was unable to restore fourth-quarter 2021 access to the Employee Retention Tax Credit in its omnibus spending package, we remain optimistic that this is a delay and not defeat," Mike Goscinski, NAMA senior director of external affairs, said in a prepared statement. "Employers need relief, and the strong bipartisan support for the Employee Retention Tax Credit Reinstatement Act shows that Congress understands that.

"When Congress negotiated the infrastructure bill last fall, the nation was in a different state of recovery. Unfortunately, the rise of new variants continued to unevenly impact small businesses and hinder their rebound. By the time the infrastructure package was signed into law, small businesses were reeling again — without access to ERTC, the last safety net provided by lawmakers.

"We urge Congress to fulfill its promise to small businesses by working diligently toward passing it into law," Goscinski said.