Congress Explores Curbing Pandemic Tax Break in Bid for Last-Ditch Deal

WASHINGTON—U.S. lawmakers are considering curbing a troubled pandemic-era tax credit as they negotiate a bipartisan deal that could include about $100 billion in tax breaks for businesses and families. 

Senate Finance Committee Chairman Ron Wyden (D., Ore.) said Tuesday he wants to limit abuses of the employee retention tax credit, or ERC. The program, created in 2020 to encourage employers to keep workers attached to their jobs, has cost about triple earlier estimates.