Toy Association Urges Congress to Follow Through with Promised Tax Credits for Small Businesses

October 26, 2021 | The Toy Association is joining a coalition of trade groups to urge congressional leaders to follow through on their commitment to provide businesses with access to Employee Retention Tax Credit (ERTC) funds through year’s end. The coalition previously submitted a letter to Congress detailing this position.

The ERTC was established under the CARES Act during the pandemic to help companies keep employees on their payroll, but the Infrastructure Investment and Jobs Act, as passed by the Senate, would terminate the tax credit three months earlier than expected, rendering any wages paid after September 30 ineligible for the credit. The change could impact small businesses and their employees this holiday season.

“As if dealing with the supply chain disruptions and previous shutdowns haven’t been challenging enough, the early termination of the ERTC serves yet another blow to small business owners—who make up the majority of The Toy Association’s membership,” said Jennifer Gibbons, senior vice president of government affairs at The Toy Association. “We are hopeful Congress will not overlook the struggles small businesses are facing and will take action to fund the ERTC through the end of the year as previously established.”

The Toy Association applauds the 17 members of Congress who have already made public their support for small businesses by issuing a letter of support for the ERTC. Toy Association member companies impacted by changes to the ERTC are encouraged to contact the Association to provide feedback and inform outreach to Congress.

The Toy Association will continue to keep members informed on this matter. Questions may be directed to The Toy Association’s Jennifer Gibbons.