House members introduced a bill on May 8 to expand the employee retention tax credit, which was included in the $2.2 trillion coronavirus stimulus package signed by President Trump in March. Currently, the law grants businesses a tax credit of up to $5,000 per employee for the rest of the year.
The bill is sponsored by Reps. Stephanie Murphy (D-Fla.), John Katko (R-N.Y.), Suzan DelBene (D-Wash.), Brian Fitzpatrick (R-Pa.) and Chris Pappas (D-N.H.). According to The Hill, the expansion would allow businesses to obtain “credit of 80 percent on the first $15,000 of wages per employee per calendar quarter,” as well as, “raise the threshold for treatment as a large employer from more than 100 employees to more than 1,500 employees or more than $41.5 million in 2019.” Employers will be able to use the employee retention tax credit and the Paycheck Protection Program. In addition, the bill would permit state and local government to obtain the credit.