The Recovery Startup Business shares some similarities with the Employee Retention Credit. Note that there have been numerous updates and clarifications on these refundable tax credits, but if your business meets the requirements, you can obtain up to $100k.
Based on the expansion of the definition of Recovery Startup Business (Notice 2021 -49 page 7) that the IRS released in August 2021, these are the eligibility criteria (employees w2 in 2021 Q3 and Q4):
- that began carrying on any trade or business after February 15, 2020,
- for which the average annual gross receipts of the employer (as determined under rules similar to the rules under section 448(c)(3) of the Code) for the 3-taxable-year period ending with the taxable year that precedes the calendar quarter for which the credit is determined does not exceed $1,000,000, and
- that is not otherwise an eligible employer due to a full or partial suspension of operations or a decline in gross receipts (ERC eligible)
Amount of credit – Up to $50,000 per 2021 Q3 and 2021 Q4 – Up to $100,000 in total
Applicable period (Amended of 941 required to claim credit) -2021 Q3 and 2021 Q4
Link IRS – Claim period – A recovery startup business can still claim the ERC for wages paid after June 30, 2021, and before January 1, 2022.