Details of Public Law 117-58, section 80604 , Infrastructure Investment and Jobs Act, Termination of Employee Retention Credit for Employers Subject to Closure Due to COVID-19

This section generally modifies the termination date from 1/1/2022 to 10/1/2021 for the Employee Retention Credit (ERC) used to reduce federal employment taxes for employers subject to closure due to Covid-19. Under this section, the credit applies to wages paid after 06/30/2021 and before 10/1/2021, unless the eligible employer is a recovery startup business. For recovery startup businesses the credit would still apply to wages paid after 06/30/2021 and before 1/1/2022.

This section also makes clarifying changes to the definition of a recovery startup business.