Orgs Support Employee Retention Tax Credit Expansion 

June 17, 2020

The Honorable Nancy Pelosi
Speaker
U.S. House of Representatives
Washington, DC 20515

The Honorable Mitch McConnell
Majority Leader
U.S. Senate
Washington, DC 20510

The Honorable Charles E. Schumer
Minority Leader
U.S. Senate
Washington, DC 20510

The Honorable Kevin McCarthy
Minority Leader
U.S. House of Representatives
Washington, DC 20515

Dear Speaker Pelosi and Leaders McConnell, Schumer, and McCarthy:

On behalf of the undersigned organizations, we write to express our strong support for H.R. 6776, the “JOBS Credit Act of 2020” and to ask that it be included in a future legislative package addressing COVID-19 and the economic harm caused by the pandemic. The bipartisan bill, introduced on May 8, 2020, by Representative Stephanie Murphy along with original cosponsors Representatives John Katko, Suzan DelBene, Brian Fitzpatrick and Chris Pappas, would expand upon the Employee Retention Credit (ERTC). The ERTC was enacted as part of the CARES Act to provide businesses with a financial incentive to keep employees on the payroll where business operations were fully or partially suspended due to a COVID-19 related closing orders, through no fault of their own, or where a company's gross receipts significantly declined compared to the same quarter last year.

If enacted, the bill would enhance the ERTC in the following ways:

• Increase the credit to 80% from 50%;

• Increase the wage base to $15,000/quarter for up to three quarters from $10,000/year;

• Ease the qualifying rules for revenue decline;

• Include health benefits in the definition of qualified wages; and

• Allow businesses that receive a Paycheck Protection Program loan to qualify for the credit.

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. In closing, the enhancements to the credit contained in H.R. 6776 will help our businesses and their employees even more and we ask that it be included in future legislation enacted to address the COVID-19 pandemic.

Sincerely,

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
Wine & Spirits Wholesalers of America