Loss of employee retention tax credit poses risks to orchestras and other nonprofits 

Posted on: May 24, 2022

“In the face of congressional inaction on legislation to restore the employee retention tax credit for the fourth quarter of 2021, nonprofit organizations could find themselves having to lay off workers or unable to rehire laid off employees,” writes David van den Berg in Friday’s (5/20) Law 360 (subscription required). “A proposal from Rep. Carol Miller, R-W.Va., and a companion bill from Sen. Maggie Hassan, D-N.H., would reinstate the credit for the fourth quarter of 2021. The Infrastructure Investment and Jobs Act ended the credit three months early…. Heather Noonan, vice president for advocacy with the League of American Orchestras, said a survey, in which 128 orchestras participated, found that 90% said federal pandemic relief, including the credit, was vital to preserving their workforces and programming. Some orchestras were counting on the fourth quarter 2021 credit when making hiring and programming choices…. Revenue streams haven’t fully recovered, she said. ‘There will be a longer tail for live performing arts events and nonprofits really of all kinds—a longer tail to the impact of COVID-19 that reaches beyond the duration of federal relief,’ Noonan said.”