The Consolidated Appropriations Act of 2021, signed into law on December 27, 2020, brought with it significant extensions and expansions to tax law enacted as a result of COVID-19 legislation passed in 2020. One such tax law in particular, the Employee Retention Credit (ERC), is catching the eye of many in the business community, especially those who have applied for Paycheck Protection Program (PPP) loan forgiveness.
Here’s a breakdown of the more important provisions regarding ERC in the 2020 legislation and the changes to those provisions in the 2021 legislation:
As with any significant new legislation or tax law, applying a high-level understanding of the law to your specific situation is important to sound decision-making. You should reach out to your accountant and financial advisors to discuss how the new legislation may affect your particular situation. Our team will continue to update this article as new information is released.