October 29, 2021
A friend of mine called me this week to get my take on the reconciliation and infrastructure bills making their way through Congress. He’s a small businessman who owns and operates more than 20 fitness centers across the state of Maryland, and his primary concern is over how Employee Retention Credits (ERCs) will be treated in the bills. As you can imagine, the past year and a half have been extremely challenging for his business, and the ERCs provided some degree of financial support. The issue he faces is while previous Covid relief legislation extended the credits through the fourth quarter of this year, the infrastructure bill inadvertently ends them after the third quarter. However, there has been discussion among lawmakers about rectifying the disconnect in the reconciliation bill. Although the ERCs are his immediate concern, and their eventual treatment will mean hundreds of thousands of dollars to his business, his longer-term concern is the breakdown in the legislative process.