Tax Cut for Local Businesses & Save Hotel Jobs Act

April 29, 2021
During Monday's session, the Connecticut House of Representatives unanimously voted in favor of H.B. 5377An Act Concerning the Removal Of COVID-19 Related Layoffs From the Unemployment Compensation Experience Account.  If passed by the Senate and approved by the Governor, this bill would cut taxes for local businesses.
 
This proposal excludes COVID-19 related layoffs from the Unemployment Compensation Experience Account and new contribution rate for 2021.  
 
The usual rate that a business must contribute to the Unemployment Compensation Experience Account increases based on the number of employees laid off in order to compensate for the increased strain on our unemployment fund from those layoffs.
 
However, through H.B. 5377, unemployment benefits paid to former employees from July 1, 2019 to June 30, 2021 will not affect an employer’s experience rate. This is a huge relief for local businesses.
 
Small and local businesses were hit particularly hard by the COVID-19 pandemic. Although Connecticut's strong COVID-19 response and vaccine distribution have signaled a brighter future, there is still a lot of work to be done, especially for small business owners. This bill will ensure that they will have one less financial burden to consider as they work towards rebuilding.

Save Hotel Jobs Act

The American Hotel & Lodging Association (AHLA) and UNITE HERE ask for your assistance in reaching out to our federal delegation for their support of the Save Hotel Jobs ActPlease see the message below from UNITE HERE and the AHLA regarding this legislation:

"The American Hotel & Lodging Association (AHLA) and UNITE HERE, the largest hospitality workers union in North America, today joined forces to call on Congress to pass the Save Hotel Jobs Act. The bill, introduced by U.S. Senator Brian Schatz (D-Hawaii) and U.S. Representative Charlie Crist (D-Fla.), provides a lifeline to hotel workers, providing the assistance they need to survive until travel returns to pre-pandemic levels.

"The pandemic has been devastating to the hospitality industry workforce. Leisure and hospitality has lost 3.1 million jobs during the pandemic that have yet to return, representing more than a third of all unemployed persons in the United States, according to the Bureau of Labor Statistics. Even more stark, the unemployment rate in the accommodation sector specifically remains 330% higher than the rest of the economy.

"Unfortunately, the road to recovery for the hotel industry is long. While leisure travel will start returning this summer as more people are vaccinated, business travel—the largest source of hotel revenue—is down 85% and is not expected to begin its slow return until the second half of this year. Full recovery is not expected until 2024. 

"The Save Hotel Jobs Act will provide critical support to hotels and their workers during this crucial period. Key provisions include the following:

  • Supporting Hotel Workers: Direct payroll grants will be utilized for payroll and benefits expenses for workers. The legislation would also require grantees to give laid-off workers recall rights to ensure those who lost their hotel jobs due to the pandemic are able to get back to work.
  • Allowing Worker-Friendly Tax Credits: Provides a Personal Protective Equipment Tax Credit to promote worker safety measures, which would allow for a payroll tax credit for 50% of costs associated with the purchase of personal protective equipment, technology designed to reduce the impact of the pandemic, increased testing for employees, and enhanced cleaning protocols that do not negatively impact the level of work for housekeeping staff. 

"Empty or permanently closed hotels have a ripple effect on communities throughout the country, hurting a wide range of businesses that rely on the presence of hotel guests, such as restaurants and retail, hotel supply companies and construction. For every 10 people directly employed on a hotel property, hotels also support an additional 26 jobs in the community, according to a study by Oxford Economics. With hotels expected to end 2021 down 500,000 jobs, based on the pre-pandemic ratio, an additional 1.3 million hotel supported jobs are in jeopardy this year without additional support from Congress.

"This crisis has been especially devastating in urban areas, hurting minority communities. Urban hotels, which are more reliant on business and group travel and more likely to host larger events, ended January down 66% in room revenue compared to last year. That does not include the lost revenue from groups, meetings and food and beverage, which contribute significantly to business in these markets. According to recent reports, New York City has seen one-third of its hotel rooms—more than 42,000—wiped out by the COVID-19 pandemic, with nearly 200 hotels closing permanently in the city." --UNITE HERE and AHLA