Nussle calls for ERTC consideration ahead of tax bill markup
America’s Credit Unions President/CEO Jim Nussle sent a letter Thursday to the House Ways and Means Committee and Senate Finance Committee urging them to fix an oversight to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) when marking up the tax proposal announced earlier this week. The CARES Act unintentionally prohibited the Employee Retention Tax Credit (ERTC) for federally chartered credit unions for tax year 2020, an error, making these credit unions one of the only ineligible private sector businesses.
In the letter, Nussle described this as a “matter of simple fairness” as state-chartered credit unions are eligible to receive this credit for 2020. Federal credit unions are not-for-profit cooperatives under Section 501(c)(1) of the Internal Revenue Code and are classified as “federal instrumentalities” in the CARES Act. The congressional intent to the ERTC was to block quasi-governmental entities from accessing this payroll credit, not federally-chartered credit unions.
The House Ways and Means Committee is expected to mark up the legislation starting Friday morning.
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