President Signs Infrastructure Investment and Jobs Act
The Expansive $1.2 Trillion Bill
On 11/15/21, President Biden signed an expansive $1.2 trillion infrastructure bill, the Infrastructure Investment and Jobs Act (HR 3684), that will provide investments in US transportation networks, public works projects, and broadband. The bill is expected to create 1.5 million jobs every year for the next 10 years.
The bill aims to rebuild America’s transportation networks (roads, rails, bridges), expand access to clean drinking water, tackles climate and environmental issues, and invest in communities. According to the Whitehouse’s official communication, the bill aims to:
- Deliver clean water to all American families and eliminate the nation’s lead service lines.
- Ensure every American has access to reliable high-speed internet.
- Repair and rebuild our roads and bridges with a focus on climate change mitigation, resilience, equity, and safety for all users.
- Improve transportation options for millions of Americans and reduce greenhouse emissions through the largest investment in public transit in U.S. history.
- Upgrade our nation’s airports and ports to strengthen our supply chains and prevent disruptions that have caused inflation. This will improve U.S. competitiveness, create more and better jobs at these hubs, and reduce emissions.
- Make the largest investment in passenger rail since the creation of Amtrak.
- Build a national network of electric vehicle (EV) chargers.
- Upgrade our power infrastructure to deliver clean, reliable energy across the country and deploy cutting-edge energy technology to achieve a zero-emissions future.
- Make our infrastructure resilient against the impacts of climate change, cyber-attacks, and extreme weather events.
- Deliver the largest investment in tackling legacy pollution in American history by cleaning up Superfund and brownfield sites, reclaiming abandoned mines, and capping orphaned oil and gas wells.
Termination of the Employee Retention Credit
The Infrastructure Investment and Jobs Act addresses the termination of the Employee Retention Credit (ERC).
Previously, The Consolidated Appropriations Act of 2021 (the “Act”) allowed entities that have a PPP loan to also take advantage of the ERC in 2020 and 2021. If an entity qualified, it could not use the same wages that were forgiven via the PPP loan as part of the ERC calculation. In order to qualify for the ERC in 2020, quarterly 2020 revenues must have been reduced by at least 50% as compared to the same quarter in 2019. The credit was then reflected on amended quarterly tax returns.

The Consolidated Appropriations Act of 2021, along with the American Rescue Plan, extended this credit to all four quarters of 2021 and reduced the revenue reduction requirement to at least 20% for 2021. This calculation compared 2021 quarterly revenues to 2019 quarterly revenues for the similar quarter. If any quarter of 2021, revenues were down by 20% or more, then you could potentially qualify for the credit. This credit for 2021 is now 70% of eligible wages up to $10,000 per employee per quarter.
The Infrastructure Investment and Jobs Act cuts short the application period and eliminates the credit for wages paid after September 30, 2021.
Recommended Steps
Changes to tax procedure, the ERC, infrastructure-related tax, cryptocurrency reporting and more could affect your business.
- Click to download more information about the Infrastructure Investment and Jobs Act. Resource by Wolters Kluwer
- Speak to your advisory to see if and how this new bill affects your company.
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This material is generic in nature. Before relying on the material in any important matter, users should note date of publication and carefully evaluate its accuracy, currency, completeness, and relevance for their purposes, and should obtain any appropriate professional advice relevant to their particular circumstances.
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