United States--Mexico Economic Partnership Act--Continue

Floor Speech

BREAK IN TRANSCRIPT

Mr. GRASSLEY. Mr. President, I ask unanimous consent to engage in a colloquy with my colleague, Finance Committee Ranking Member Wyden, to discuss a tax provision included in the omnibus appropriations bill currently before the Senate. The tax title in this bill contains important clarifications to, and expansions of, the Employee Retention Tax Credit established under section 2301 of the CARES Act. This credit has provided vital payroll support to struggling businesses in Iowa and across the country. The enhancements included in this bill are necessary to help more employers access the credit. Importantly, the bill clarifies that businesses that received Paycheck Protection Program loans, or PPP, are still eligible for the credit based on other wages and benefits paid. Does Member Wyden agree that our intent is to allow struggling small businesses to access the retention credit, even if they have received a PPP loan?

BREAK IN TRANSCRIPT

Mr. GRASSLEY. Yes. That is why we are allowing these businesses, both those with forgiven loans and those without, to claim credits for wages paid in previous quarters that this bill makes eligible for the credit on their fourth quarter 2020 payroll tax filings. This will prevent small businesses from having to amend their previously filed payroll tax returns, easing the paperwork burden for both taxpayers and the Internal Revenue Service. I know Ranking Member Wyden will join me in urging the IRS to do all they can to simplify and expedite the process for eligible businesses retroactively claiming the retention credit. The last thing these businesses need right now is additional, complex payroll tax filings.

I thank the ranking member for engaging in this colloquy to discuss this important issue and the clarification included in the pending appropriations bill.

BREAK IN TRANSCRIPT

Source