Written by Darren Kray, CPA

Managing Partner, LB Carlson

On Monday, November 15, 2021, President Biden signed the Infrastructure Investment and Jobs Act (“IIJA”).  The IIJA repealed the Employee Retention Credit for 4th Quarter of 2021.

The Employee Retention Credit is still available for 2020 and the first three quarters of 2021.  If you had a decrease in revenues of 50% of more in any of the last three quarters 2020 compared to the same quarter in 2019 you could be eligible to receive a credit of up to $5,000 per employee. If your revenues decreased by more than 20% in any of the first three quarters as compared to the revenues for the same quarter of 2019 you may be eligible to receive a credit of up to $7,000 per employee for each quarter that your business qualifies.

 The IIJA will provide $1.2 trillion in spending, $550 billion of which would be new federal spending to be allocated to infrastructure projects over the next five years:

  • $110 billion to repair the nations’ highway and, bridges, roads and other transportation programs
  • $39 billion to expand and modernize transportation systems
  • $66 billion to reduce Amtrak’s maintenance backlog and improve rail service routes
  • $7.5 billion for electric vehicle charging stations
  • $5 billion to purchase electric buses
  • $2.5 billion to purchase electric ferries
  • $65 billion to modernize electric grid
  • $25 billion to airports to improve runways, gates, taxiways, terminals and air traffic control towers
  • $55 billion on water and wastewater infrastructure
  • $65 billion to bolster the country’s broadband infrastructure
  • $1 billion to clean up rivers and lakes
  • $11 billion for transportation safety programs

The IIJA and Employee retention credit have many intricate details.  We will continue to provide additional information as available.

If you have any specific questions, please call your trusted advisor at LB Carlson.