Retail Tax Priorities

As America’s largest private-sector employer, retail is an economic driver, supporting over 42 million American jobs and generating over $3.8 trillion in annual sales. RILA is committed to promoting pro-growth tax policy that benefits retail and the American families we serve each day.   

RILA's Engagement  

Since 2017, RILA has achieved considerable wins in major tax legislation passed under both Democratic and Republican majorities. In previous Congresses, the corporate rate was lowered to 21% and preserved, and the Corporate Alternative Minimum Tax (CAMT) was enacted, requiring companies that paid little or no corporate income taxes and earned over a billion dollars annually to pay a minimum of 15% in federal taxes. 

In 2025, the Working Families Tax Cuts Act (WFTCA) was enacted. Notably, this law maintains both the current corporate tax rate at 21% and full business State and Local Taxes deductibility, which is a tremendous win for leading retailers. WFTCA includes other business tax changes, including rolling back many of the energy tax credits in the Inflation Reduction Act that was passed under Democratic majorities during the previous administration. 

RILA has spent years educating members of Congress on how retailers’ sizeable footprints help communities, employees, small businesses, and working families, and how directly raising the corporate rate, or indirectly raising the rate through capping Business SALT, would adversely affect their ability to continue investing in employees and the communities they serve. 

Corporate Rate

A competitive corporate tax rate is a cornerstone of a pro-growth tax code, directly influencing retailers’ ability to invest, expand, and support the communities they serve. The current rate has allowed retailers to maintain and open new stores and distribution centers, provide new jobs, expand benefits to working families, and create new opportunities for small businesses. 

Work Opportunity Tax Credit (WOTC) 

Another important issue is the Work Opportunity Tax Credit (WOTC), which expires at the end of the year.  WOTC, a tax credit for employers that hire employees who are members of one of 10 targeted groups who would otherwise have difficulty finding employment, is used by many retailers. RILA is actively engaged as part of a broader coalition encouraging Congress to make WOTC permanent and recently submitted a statement to the House Ways and Means Committee for the hearing record with that message.