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State Senators to Reintroduce Restaurant Revitalization Tax Credit

Sens. Ben Cardin (D-Md. ), Sherrod Brown (D-Ohio) and Patty Murray (D-Wash.) are reintroducing the Restaurant Revitalization Tax Credit Act to the new 118th Congress. The legislation would create a special tax credit for those who applied for and were eligible for a Restaurant Revitalization Fund grant but did not receive one because the Small Business Administration (SBA) did not have enough funds.

Many Did Not Receive Funding

175,000 (roughly two-thirds) of businesses did not receive funding from the nearly $28.6 billion of RFF grants awarded to restaurants in 2021. The second round of this revitalization fund died in congress in May, however, the RFF re-entered the conversation for a 3rd time this fall when the SBA distributed $83 million in leftover funds to 169 restaurants from the first plan.

“We have not forgotten about these restaurants. They have been hurting for too long,” Senate Finance Committee chair Sen. Cardin said in a statement. “The Restaurant Revitalization Fund was a timely program that simply did not have enough funds to cover the intense demand. I’ve heard from many restaurant owners who, having missed out on these funds, use their retirement savings or put their homes up as collateral to keep their businesses afloat. This tax credit will help ease their burden. It will support the restaurants we love while helping to boost our local economies.”

Details of the Bill

The legislation stays the same as when it was introduced during the first go around with congress in 2021, and the parameters look like this:


  • The tax credit is available to eligible employers who applied for the Restaurant Revitalization Fund in 2021 but did not receive funding, to offset payroll taxes of up to $25,000 per quarter in 2023.


  • For businesses with 10 or fewer employees, the credit is refundable up to a total of $25,000, and the cap on refundability is gradually phased out for businesses with fewer than 20 employees.


  • Eligible businesses must have been in operation on or before March 14, 2020, have paid payroll taxes for at least two quarters in 2021, and must also have experienced average operating losses of at least 30% in 2020 and 2021 as compared to 2019, or losses of at least 50% in either calendar years 2020 or 2021 as compared to 2019.

Wrap Up

This new revitalization is good news for many eligible restaurant owners, and hopefully, everyone gets the relief they are entitled to. If you think your restaurant is eligible for this tax credit, it is important to get in touch with a trusted tax advisory or financial specialist to help you get the most out of this credit.

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