Senators reintroduce tax credit bill for restaurants that did not get help from RRF

Sens. Ben Cardin (D-Md.), Chair of the Senate Committee on Small Business, Patty Murray (D-Wash.), and Sherrod Brown (D-Ohio) re-introduced the Restaurant Revitalization Tax Credit Act this week. The legislation, which failed to pass in the last Congress, would create a special tax credit for businesses that were approved for but did not receive assistance through the Restaurant Revitalization Fund (RRF). 

The tax credit would be available to eligible employers to offset payroll taxes of up to $25,000 per quarter in calendar year 2023. For businesses with 10 or fewer employees, the credit is refundable up to a total of $25,000 over the course of the year, with the cap on refundability gradually phased out for businesses with fewer than 20 employees. 

Additionally, restaurants must have experienced average operating losses of at least 30% in 2020 and 2021 as compared to 2019, or losses of at least 50% in either calendar years 2020 or 2021 as compared to 2019. 

Lastly, a restaurant must have been in operation prior to March 14, 2020, and have paid payroll tax in at least 2 quarters in 2021.

“We have not forgotten about these restaurants that have been hurting for too long," said Cardin. “I’ve heard from many restaurant owners who, having missed out on these funds, used their personal retirement savings or put their homes up as collateral to keep their businesses afloat. This tax credit will help ease their burden. It will support the restaurants we love while helping to boost our local economies.” 

The Association’s Advocacy staff are working to expand awareness of the RRTC throughout the halls of Congress and educate policymakers on the critical need to support restaurants still struggling to stay afloat after the Covid-19 pandemic and amid high inflation.