Employment Tax Incentives to Promote Recovery from the COVID-19 Recession: Policy Options [June 25, 2020] [open pdf - 627KB]
From the Document: "Some Members of Congress and the Trump Administration have shown interest in additional tax benefits to encourage employee retention or hiring as a response to the Coronavirus Disease 2019 (COVID-19) recession. The Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136), signed into law on March 27, 2020, created an employee retention tax credit equal to 50% of qualified wages paid by eligible employers to qualifying employees between March 12, 2020, and December 31, 2020. This refundable payroll tax credit can be claimed for up to $10,000 in wages, making the maximum credit per employee $5,000. The Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act (H.R. 6800), as passed in the House on May 15, 2020, would increase the amount of the credit. Employer tax relief is one option for supporting employment and promoting economic recovery from the COVID-19 recession. This Insight highlights some considerations that may inform the policy debate regarding this approach, and examines the federal government's past experience with hiring tax incentives."
CRS Insight, IN11436
Congressional Research Service: https://crsreports.congress.gov/