Change Country

Tax & Assurance Guidance

Insights from Washington: Infrastructure & Budget Reconciliation Waiting Game

Posted on October 5, 2021 by

Sarah Russell

Sarah Russell

Share This

Another week has passed without action in Congress. House Democrats delayed an expected vote on the infrastructure bill as it became evident they didn’t have enough votes to pass the Senate-passed bipartisan legislation without further action on the much larger budget reconciliation (Build Back Better) bill.

House Speaker Pelosi and Senate Majority Leader Schumer have now set the end of October as their next self-imposed deadline. Their goal is to get both the infrastructure bill as well as the budget reconciliation bill done in the next month. Democratic leadership continues to negotiate a top-line figure on the reconciliation bill with moderates in the party. Once the top-line figure is established, we expect to get more clarity on what portions of the proposed tax increases will likely be included.

One important item to note is that the infrastructure bill eliminated the employee retention credit after the third quarter of 2021. Businesses who have qualified for the credit this year cannot count on the credit being available in the fourth quarter. The current enacted legislation allows businesses to retain payroll taxes to the extent of the expected credit generated during the quarter through December 31, 2021. If the legislation passes as drafted, it is unclear whether penalties and interest will be assessed for amounts retained in the period before new legislation passes. There has been no indication from Congress whether this part of the bill will be amended.

We will continue to provide updates as the news progresses. If you have any questions, please contact us.

Share This

Sarah Russell


As the leader of the firm's tax group, Sarah supports growth-driven domestic and international businesses with tax planning, consulting and compliance.

Related Insights

Foreign Direct Investment Survey Year 2022

Another five years have slipped by and that means it is once again time to complete the BE-12, Benchmark Survey of Foreign Direct Investment in the United States. While the official forms have not been released, final rules amending existing regulations became effective October 31, 2022, describing changes to the information collected.

by Sue Tuson

New Corporate Transparency Act Reporting Requirements

Learn about the new Corporate Transparency Act reporting requirements that go into effect on January 1, 2024, including beneficial owners, company applicants, exempt entities and due dates.

by Sue Tuson

Keeping Up With Digital Taxes

To the uninitiated, selling digital products and services can seem like a much easier business model than selling physical goods. While there may be advantages to skipping inventory and warehouse needs, the digital tax landscape can be tricky to navigate. 

by Miroslav Georgiev

by Sue Tuson

The Sound of Automation Podcast

Industrial automation businesses are the driving force behind Industry 4.0, and Clayton & McKervey is here to help.

Skip to content