The Disaster Tax Relief and Airport and Airway Extension Act of 2017 delivers targeted tax relief to businesses affected by Hurricanes Harvey, Irma, and Maria. Section 503 of the bill entitled Disaster-Related Employment Relief includes an Employee Retention Credit (ERC) for employers. Qualifying businesses with locations in 177 disaster declared counties or municipalities in Texas, Florida, Georgia, Puerto Rico and the Virgin Islands can seek a tax credit for continuing to pay their employees during the time-frame that the business was impacted by the disaster.
Employers can seek a 40% credit for wages paid to employees (up to a maximum wage of $6,000) for a tax credit of up to $2,400 per employee during the period when a business location became inoperable or was significantly impacted by the hurricane(s), up until the date the location resumed full operations, or until January 1, 2018, whichever comes first. The Act does not define the terms “inoperable” or “resumed significant operations,” which is consistent with language from previous storm relief credits. The damage need not be to the employer’s place of business. For this purpose, a business is inoperable if, the business is physically inaccessible to employees, utilities, raw materials or customers, because of the disaster.
The Employee Retention Credit is available to employers of all sizes as a general business credit that can be carried forward for 20 years.
- Identifying your company’s qualified locations.
- Identifying “inoperable” qualifying factors that have been used in past storm relief measures.
- Establish the dates locations were impacted and subsequently resumed significant operations.
- Isolating wages paid to eligible employees during the qualified period.
- Calculating and reporting the Employee Retention Credits that your business is eligible to claim
- We secured similar Hurricane Relief Tax Credits after Katrina for businesses throughout the affected areas. We helped one business secure over 22 million dollars!
- You can count on our experience and technology to maximize Employee Retention Credits for your business during this limited window of opportunity.
- Contact Us by phone 800-451-6277 or email email@example.com to learn more.