Article
Six tax credits and incentives that could save your company money
March 22, 2021 · Authored by Tom Sanger, Jason Thompson, Rob O'Neill
There are several tax credits and incentives that could lead to an increased cash flow for your company. For businesses experiencing hardship due to the COVID-19 pandemic, many of these opportunities could provide much needed refunds to improve your company’s cash position.
Below are six significant areas of opportunity to consider:
Employee retention tax credit
Introduced in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the ERTC is a refundable tax credit used to offset businesses’ employment and withholding taxes paid on Form 941.
The credit intends to support businesses during the COVID-19 pandemic. Employers whose business was or is currently fully or partially suspended due to emergency orders from a government authority that limited commerce, travel, or group meetings may qualify.
A business can also qualify if it experienced a reduction in gross receipts during a quarter after the pandemic started in 2020 if gross receipts during that calendar quarter compared to that of the same calendar quarter in 2019 — a 50% reduction in gross receipts between March 13, 2020, and Dec. 31, 2020, and for calendar quarters in 2021 a 20% reduction in gross receipts between Jan. 1, 2021, and Dec. 31, 2021.
Qualified employers
The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.