ARLINGTON, VA , USA – The National Automatic Merchandising Association (NAMA) has delivered a letter on behalf of a multi-industry coalition urging the Biden Administration and Congress to restore the Employee Retention Tax Credit (ERTC). Signed by 51 trade associations and charitable nonprofits representing small businesses, the letter notes that the now-prolonged recovery has stalled rehiring and cast a veil of financial uncertainty over the nation’s small businesses.
“Many NAMA members, just like other small business owners all over the nation, have been stretched beyond the breaking point by the lengthy on-again, off-again recovery,” says Mike Goscinski, Senior Director, External Affairs. “Restoration of the ERTC for Q4 2021 as promised is essential for these businesses who forecasted its use to keep employees on the payroll.”
Access the letter here.
In December 2021, the bipartisan Employee Retention Tax Credit Reinstatement Act was introduced in the U.S. House of Representatives by U.S. Reps. Carol Miller (R-WV), Kevin Hern (ROK), Stephanie Murphy (D-FL), and Terri A. Sewell (D-AL). The bill was a direct result of NAMA’s unflagging advocacy for preservation of the tax credit, an effort that in November 2021 mobilized more than 100 representatives of the convenience services industry for meetings with Members of Congress.
The legislation would reinstate tax relief previously established by Congress to offset a small portion of employee wages in fourth quarter of 2021 — $193 million for the convenience services industry. Access to these funds was cut during infrastructure funding negotiations.
One of the few financial safety nets available to the convenience services industry, ERTC was a vital lifeline to these small businesses. Even with ERTC assistance, NAMA estimates that nearly one in three (28.7%) convenience services industry jobs has been lost due to the COVID-19 pandemic.