Employee Retention Tax Credit

Congress enacted the Employee Retention Tax Credit (ERTC) to financially support employers as they struggled to pay staff early in the pandemic. The ERTC proved essential for associations that were ineligible for the Paycheck Protection Program during all of 2020 to avoid bankruptcy, protect jobs and support critical services.

The tax credit was authorized through the end of 2021, but Congress revoked it for the last quarter of the year. Associations and other employers, therefore, unexpectedly faced $7-$8 billion in retroactive taxes.

Our Position

ASAE supports reinstating the Employee Retention Tax Credit retroactively for the fourth quarter of 2021, which would save associations and nonprofits $8 billion

Power of Associations Key Contact

For more information about the ERTC and other ASAE advocacy initiatives and how you can get involved, contact the Public Policy team at 202.626.2703 or