FOCUS | ACCOUNTING/BUSINESS VALUATION & SUCCESSION Revisions boost interest in special tax credit BY NANCY LAVIN | Lavin@PBN.com
A $5,000-PER-EMPLOYEE TAX credit may sound like a great incentive. But the Employee Retention Credit rolled out under the Coronavirus Aid, Relief and Economic Security Act in March failed to entice many businesses in the nine months that followed. The main problem, according to local accountants, was the requirement that applicants could not also receive a forgivable loan through the Paycheck Protection Program. “We could see very few scenarios where a business would benefit from [the credit] over a PPP loan,” said Michael Garcia, a partner in enterprise solutions for Kahn, Litwin, Renza & Co. Ltd. Fast forward to February, and Garcia’s
CREDIT COUNSELOR: Michael Garcia, a partner in enterprise solutions for Kahn, Litwin, Renza & Co. Ltd., has been spending a lot of time fielding questions from clients about the Employee Retention Credit. COURTESY KAHN, LITWIN, RENZA & CO. LTD.
28 | MARCH 5-18, 2021 | PROVIDENCE BUSINESS NEWS | www.pbn.com
