On Thursday, December 8, U.S. Senators Patty Murray (D-WA), chair of the Senate Committee on Health, Education, Labor, and Pensions (HELP); Ben Cardin (D-Md.), chair of the U.S. Senate Committee on Small Business and a senior member of the Senate Finance Committee; and Sherrod Brown (D-Ohio) introduced The Restaurant Revitalization Tax Credit Act. This legislation creates a special tax credit available to businesses that applied for the Small Business Administration (SBA) Restaurant Revitalization Fund (RRF) program but were unable to receive a grant because the program ran out of funding.
The Small Business Administration (SBA) recently released $83 million in leftover RRF funds, but those only went to 169 restaurant operators with applications that were already pending.
According to a press release from Murray's office, nearly two of every three eligible RRF applicants, or approximately 175,000 businesses, were left unassisted. The Restaurant Revitalization Tax Credit (RRTC) will help restaurants still struggling to recover after two of the most challenging years in the history of the food and beverage industry meet increased labor costs and other rising operational expenses.
The Restaurant Revitalization Tax Credit Act establishes the RRTC, which is 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. The credit is open only to those businesses that applied for and were eligible to receive RRF grants. They also must have experienced average operating losses of at least 30 percent in 2020 and 2021 as compared to 2019 or losses of at least 50 percent in either calendar years 2020 or 2021 as compared to 2019. In addition, a business must have been in operation prior to March 14, 2020, and have paid payroll tax in at least two quarters in 2021.
“Restaurants are the heart and soul of communities throughout Washington state. As our country continues to recover from the pandemic, restaurants need our help to keep their doors open and employees on payroll,” said Senator Murray. “While the American Rescue Plan saved thousands of restaurants, its Restaurant Revitalization Fund left too many behind. I believe we need to replenish the Fund and will keep pressing to do so. Until that happens, bills like the Restaurant Revitalization Tax Credit Act will help keep restaurants afloat. This tax credit would benefit every eligible restaurant that applied to the Fund, but never received a grant through no fault of their own."
Plan to Attend or Participate in Bar & Restaurant Expo, March 27-29, 2023
To learn about the latest trends, issues and hot topics, and to experience and taste the best products within the bar, restaurant and hospitality industry, plan to attend Bar & Restaurant Expo, March 27-29, 2023 in Las Vegas. Visit BarandRestaurantExpo.com.
To book your sponsorship or exhibit space at Bar & Restaurant Expo, contact:
Veronica Gonnello (for companies A to G) e: [email protected] p: 212-895-8244
Tim Schultz (for companies H to Q) e: [email protected] p: 917-258-8589
Fadi Alsayegh (for companies R to Z) e: [email protected] p: 917-258-5174
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