The proposed infrastructure bill has a provision to terminate the Employee Retention Credit (ERC) as of September 30, 2021.
Many farmers are or will qualify for the employee retention credit (ERC) based on their quarterly revenues in 2021 being at least 20% lower than the same quarter in 2019. This credit can be substantial if the farmer qualifies for all four quarters in 2021 since an employee with at least a $40,000 annual wage could qualify for a $28,000 tax credit that is refundable.
ERC had been extended through December 31, 2021, however, the proposed infrastructure bill just released has a proposal to terminate the ERC as of September 30, 2021 unless you are a “qualified recovery startup business” which would not apply to most farmers.
This bill has not passed yet and will still need to work its way through House which wants to tie it to the “human infrastructure bill”. Just be forewarned that the ERC may terminate as of September 30, 2021.
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