Additional Help Through ERCs: Benefit Through Expanded Rules
ERCs: More Opportunity Than You Think
One segment of the CARES act, the Employee Retention Tax Credit (ERTC) was designed to give significant relief to businesses impacted by COVID-19. And, with significant changes for 2021, many dealers who think they do not qualify actually do.
What is surprising is that even in times of profitability, requirements to qualify still can be applied. The original ERTC rules were designed around businesses forced to close or reduce operations, or who suffered significant losses in revenue.
But, the changes allow for expanded impact. For example, the well-known chip shortage is impacted by government restrictions even if it was with international suppliers. That counts. Even with profits up and little to no drop off in receipts, dealers can still qualify because of inventory impacts.
It’s worth a second look to see how this can still help dealers.
The credit is available only during times of governmental restriction so make sure you know the Federal, state, and local restrictions.
For more information, contact your Brady Ware advisor.