House Democrats unveiled their plans for the next coronavirus relief package, H.R. 6800, The Heroes Act. The $3 trillion bill contains a number of notable provisions for which the attractions industry has been heavily advocating. Of note, the bill provides amendments to modify the Paycheck Protection Program (PPP) as well as to expand and enhance the Employee Retention Tax Credit (ERTC). Specifically, the legislation would:
- Add flexibility in the PPP by extending the covered period for borrowers from an 8 week period to 24 weeks and extend the covered period from June 30 to December 31, 2020.
- Establish a minimum maturity on PPP loans of 5 years to enable borrowers to repay loans over a longer period of time.
- Provide a safe harbor for purposes of forgiveness if employers are unable to rehire their employees in the prescribed timeframe.
- Clarify the coordination between the ERTC and the PPP loans to ensure borrowers can take advantage of both types of assistance.
- Specifically with regards to the ERTC the bill: 1) increases the credit percentage from 50 percent to 80 percent of qualified wages; (2) increases the per-employee limitation from $10,000 for all quarters to $15,000 per calendar quarter; (3) changes the threshold for treatment as a large employer from employers having more than 100 employees to employers having more than 1,500 employees (based on the average number of full-time employees in 2019) or having gross receipts above $41.5 million in 2019; (4) makes it easier to qualify for the credit so that employers who have experienced more than a 10% reduction in revenue can claim a portion of the credit; and (5) clarifies that “qualified wages include qualified health benefits and that employers who continue providing such benefits to their employees qualify for the credit even if they do not continue paying other qualifying wages.
It is important to note however that if the legislation passes the House, it will face roadblocks in the Senate, and will most likely look very different once negotiations begin as it is unlikely to gain support in the Republican-controlled Senate without substantial modifications. House lawmakers are expected to vote on the bill on Friday, while the Senate is not expected to act until after Memorial Day. While this legislation is a step in the right direction, we ask that IAAPA members continue to reach out to their elected officials to ensure the needs of the attractions are heard.
Summaries of the legislation can be found by the Committee on Small Business, found here and by the House Committee on Appropriations, found here.
