On December 27th, President Trump signed H.R. 133, “Omnibus and COVID Relief and Response Act of 2020,” into law.
The following programs were extended through December 31, 2025.
- New Markets Tax Credit (SEC.112)
- Work Opportunity Tax Credit (SEC. 113)
- Empowerment Zone Tax Incentives (SEC. 118)
- Employer Credit for Paid Family and Medical Leave (SEC. 119)
- Indian Employment Tax Credit (SEC. 135) was extended through December 31, 2021.
- Employee Retention Credit for Employers Affected by Qualified Disasters (SEC. 303) was extended for disaster in 2020.
In addition, the CARES Act Employee Retention Credit (ERC) was extended through June 30, 2021, with these modifications.
- The credit increased from 50 percent to 70 percent of qualified wages and qualified wages are increased from $10,000 total to $10,000 per quarter.
- Business qualification changes included a reduction in gross receipts from 50 percent to 20 percent and the use prior quarters gross receipts. Availability is expanded from 100 employees for determining qualified wage base to 500 employees.
- Retroactively allowing employers who received Paycheck Protection Program loans to claim ERC for wages that were not paid for with forgiven PPP loans.
- ERC is available in 2021 to public universities, colleges, medical facilities and hospitals.
Let our team help your business navigate these changes and maximize the revenue benefits of these lucrative tax credit programs. Contact CCC Tax Credits Division at (800) 451-6277 or via email.
