Employee-Retention Tax Credit About To Expire January 31 – Rep. Malliotakis Urges Qualified Businesses To File As Tax Bill Works Through Congress

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Malliotakis Urges Businesses to File for Employee Retention Tax Credit Before Potential January 31 Deadline
Cites possible changes to tax code in bipartisan tax framework
The following two questions were asked of the representative’s office.  Questions and answers are below: 

Q-Would the representative know if there are any bills planned to continue funding for this program (ERTC) past the January 31st deadline, or what the chances are that it will be left in the tax code?

A-The discontinuation of the ERTC has been negotiated as part of the bipartisan & bicameral Tax Relief for American Families and Workers Act, so if that bill is signed into law (which they are aiming to do before tax season), then any claims filed after Jan. 31 would not be considered.

Q-Also, what are the dates to which the program applies? Did it stop in 2021, or are there still businesses able to claim the credit into 2023?

A-I’m not super familiar with the ERTC’s history, but you can learn more about it on the IRS’ website here: https://www.irs.gov/coronavirus/employee-retention-credit#:~:text=The%20Employee%20Retention%20Credit%20(ERC,during%20the%20COVID%2D19%20pandemic.
(WASHINGTON, DC) – Congresswoman Nicole Malliotakis (NY-11), a member of the House Committee on Ways and Means, Congress’ chief tax writing committee, is urging businesses in New York’s 11th Congressional District to file for the Employee Retention Tax Credit (ERTC) before January 31, 2024, citing potential changes to the tax code in the new bipartisan tax framework.
“Under the new bipartisan tax framework being negotiated by House and Senate financial leaders, the Employee Retention Tax Credit will be removed from the tax code. Because of this, all ERTC claims must be filed before January 31, 2024, as Congress is hoping to pass the tax package before the current tax season begins. I encourage all of our local businesses to take advantage of this credit before it expires to offset any outstanding payroll costs due to the COVID-19 pandemic.”
The $80 billion in savings from the ERTC being discontinued will be used to extend key provisions of the 2017 Tax Cuts and Jobs Act that have expired, including research and development expensing, interest deductibility, 100% expensing for investments in facilities, equipment, and machines, as well as enhancing the Child Tax Credit for working families.
The Employee Retention Tax Credit (ERTC) is a refundable tax credit for certain eligible businesses and tax-exempt organizations that had employees and were affected during the COVID-19 pandemic. The requirements are different depending on the time period for which the credit is claimed. The ERTC is not available to individuals.
Update: Malliotakis Applauds Committee Passage of Tax Relief for American Families and Workers Act
Extends expired TCJA provisions that increase wages, reduce unemployment, help working families & small businesses
(WASHINGTON, DC) – Congresswoman Nicole Malliotakis (NY-11), a member of the House Committee on Ways and Means, applauded the Committee’s passage of the Tax Relief for American Families and Workers Act, bipartisan legislation that provides American workers, families, farmers, and small businesses much needed tax relief.
Specifically, the legislation restores expired provisions of President Trump’s 2017 Tax Cuts and Jobs Act (TCJA) that Malliotakis cosponsored or led, including increasing the Child Tax Credit and indexing it to inflation so more families qualify – including nearly 100,000 families in New York’s 11th Congressional District – research and development deductions, interest deductibility, and 100% expensing for investments in facilities and equipment. The bill also adds and improves the Low-Income Housing Tax Credit, and eliminates the Taiwan double tax that will strengthen America’s competitiveness with China.
“These pro-growth and pro-worker TCJA provisions we are extending, along with the Child Tax Credit we are expanding, have proven to increase wages, drop the unemployment and poverty rates to a 50 year low, and lift millions of working families out of poverty. Increasing the Child Tax Credit will help working families make ends meet to keep food on the table, a roof over their head, and pay for child care expenses,” Malliotakis said.
“Not only this, but our legislation will foster innovation, help small- and medium-sized businesses reinvest and expand their companies, and attract more Taiwanese investment in semiconductor factories here in the United States to improve our supply chain at home and reduce our reliance on China. Significant for New York City, this bill also improves the affordable housing tax credit that will incentivize the creation of more affordable housing units, and can even be used as the City looks to convert unused commercial office space into residential housing units.”
Because of potential changes to the tax code under this bill, Malliotakis is urging any businesses interested in applying for the Employee Retention Tax Credit to file a claim by January 31, 2024, so that it may be considered.
Under President Trump’s TCJA:
  • The bottom 20 percent of earners (those with incomes under $26,000) saw their federal tax rate fall to its lowest level in 40 years.
  • Americans earning under $100,000 on average saw their taxes reduced 16 percent.
  • Wages increased 4.9 percent in 2018 and 2019 – the fastest two year growth in real wages in 20 years.
  • Unemployment and poverty rates hit a 50 year low, including all-time lows in unemployment for African Americans, Hispanic workers and those without a high school degree.
  • The Child Tax Credit lifted 4.3 million people, including 2.3 million children, above the poverty line in 2018.
Banner Image: Squeezed by taxes. Image Credit – stevepb

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Congresswoman Nicole Malliotakis

Congresswoman Nicole Malliotakis was sworn in on January 3, 2021 to represent Staten Island and Southern Brooklyn. Prior to serving in the U.S. House of Representatives, Congresswoman Nicole Malliotakis was elected to the New York State Assembly on November 2, 2010, defeating a two-term incumbent. In the Assembly, she served as Minority Whip and the ranking minority member of the Assembly Committee on Governmental Employees. For five terms, Congresswoman Malliotakis fought to restore ethics in Albany, expand transit service in her district, improve programs for senior citizens, reform education and improve New York’s economic climate by reducing the tax burden on small businesses and residents. A cornerstone of her tenure was helping her community recover and rebuild following the devastation of Hurricane Sandy in 2012. In addition to advocating for these same issues in Washington, Congresswoman Malliotakis is acutely focused on securing New York’s fair share of federal mass transit funding, which would go towards expanding transportation services and easing traffic congestion, while also championing public safety by supporting our nation’s law enforcement officers. Congresswoman Malliotakis is the daughter of immigrants, her father from Greece and her mother a Cuban exile of the Castro dictatorship. She is currently the only Republican member representing New York City in Congress, representing a district spanning the boroughs of Brooklyn and Staten Island. She is a passionate advocate for animal rights and the strengthening of animal cruelty laws, and in her spare time, enjoys spending time with her chihuahua, Peanut.

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