Dear Clients,

I am researching an overlooked and underutilized federal tax credit program that was funded in 2020. The Employee Retention Credit (ERC) was intended to provide COVID tax credits for employers who keep their employees on payroll. The Employee Retention Credit was not part of the Paycheck Protection Program (PPP). Most businesses applied and received PPP loans through their banks. These loans were forgiven with the remittance of additional paperwork.

The federal government paid 5% of the total PPP Loan as a fee for service to the banks that provided the PPP loans. There were no incentives paid to the banks to assist employers in determining if they were eligible for the ERC tax credits. It is for this reason that most of the funds allocated to the ERC have gone unclaimed. If the ERC funds are not claimed in the next two years, I understand the funds will be reallocated to whatever social economic need is present in the future.

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