Can my construction company claim the ERC?

Many construction sectors were considered essential from March 13, 2020 to September 30, 2021. Therefore, they may not meet the criteria for a large reduction in gross receipts and fully suspended operations. However, businesses that experienced partially suspended operations due to a government mandate may qualify for the ERC under Limited Commerce.

What is limited commerce?

Limited commerce refers to a partial suspension of business operations due to a government order. A partial suspension has occurred if: • More than a nominal portion of business operations was suspended OR • A government order significantly affected operations During the calendar quarter in 2019, if your business experienced either of the below criteria, it may qualify for partially suspended operations: • Gross receipts from the suspended portion aren’t less than 10% of the total gross receipts OR • Employee hours spent on the suspended portion aren’t less than 10% of total employee hours performed

Can my construction company qualify for limited commerce?

Using your written testimony about how COVID affected your business, our independent tax attorneys and professionals will determine if your business can file under limited commerce. Your construction company may qualify due to: Supply chain disruptions Supply chains may have been impacted, despite back orders maintaining revenue. These supply chain disruptions affected the length and number of jobs, while supply and demand inflated the cost of goods. Disruptions beyond revenue Fewer jobs and increased cost of goods throughout the pandemic often led to reduced profit margins. Government incentives paid employees more to stay home, leading to higher labor costs to retain workers. Hazard pay or wage increases The construction of hospitals and other essential infrastructure created a demand for hazard pay and higher wages on top of labor shortages.

Where can I learn more about limited commerce?

The Consolidated Appropriations Act resulted in the IRS releasing Notice 2021-49, which outlines limited commerce. Please visit the IRS website for more information or work with one of our independent tax attorneys and professionals.

The ERC for construction companies

Your construction business may qualify for a significant refund through the Employee Retention Credit (ERC), even if it received PPP loans.

See If You Qualify

Keep building your business with the ERC tax refund.

Despite essential status, construction companies faced substantial disruptions, experiencing a significant slowdown that affected nearly every sector.

Here’s what our customers had to say:

90%

of builders reported shortages of appliances, framing lumber, and OSB.

90%

said there was a shortage of plywood.

87%

said there was a shortage of doors, according to a May 2021 survey.

By claiming the ERC, eligible businesses have the opportunity to receive a substantial refund. This refund can be a significant boost for those that retained their employees on payroll during 2020 and 2021.

See If You Qualify

Innovation Refunds made it easy. I cannot recommend them enough.

Shane Goggans, Goggans Construction, LLC

What is the ERC?

The Employee Retention Credit (ERC) is a tax credit program designed to provide financial relief to businesses that have faced disruptions and challenges in 2020 and 2021. The ERC involves detailed calculations and eligibility criteria, which may vary based on factors such as the size of the business, revenue loss, and types of business disruptions.

Navigating the complexities of the ERC may seem overwhelming, but we’re here to guide you every step of the way. Our team of independent tax attorneys understand the qualifications and deductions construction businesses may qualify for. In fact, they’ve already helped many construction companies receive hundreds of thousands of dollars in ERC refunds.

How much is your construction business eligible to receive?

See If You Qualify

How was your construction company affected?

It was a challenging time for all industries, but especially for construction. Wouldn’t it be nice to experience a little financial relief from the last few years? Let’s walk through a few criteria that may help your business qualify.
‍
Did your construction company experience these challenges?

Reductions in crew size due to government orders

Permit and inspection process delays

Job site access restrictions

Supply chain issues such as shortages of materials, parts, or equipment

Limited operating hours

Project delays

These issues, such as supply chain disruption and permit and inspection restrictions, impacted the timing of construction projects by days, weeks, or even months – and can play a major role in the calculation of the ERC.

Success stories from businesses in the construction industry

The service was excellent. Everyone we dealt with was so helpful, and they made a complicated process very easy.

Deann Pillitteri
Coastal Pipeline, Inc.

There is no fee from them until they get you a refund. All my emails and questions were returned promptly. Thanks for a smooth process!

Karen Hammonds
Hamcon Builders

Innovation Refunds helped us get the employee taxes we paid into IRS for 6 quarters back and got our company back on its feet strong!

Bonnie James
James Renovation and Construction

We work for you, with no upfront fee

Our independent tax attorneys have extensive knowledge of ERC qualifications and IRS tax code to help eligible construction companies claim their refund.

Trusted by thousands of SMBs

4.9 rating on Trustpilot

SOC 2 Type 1 certified security

How can construction businesses use the ERC refund?

For businesses that qualify for and use the ERC, there are many ways to put the money to good use – things like paying debts, operating expenses, hiring and retaining employees, and growing your business.
‍
In the construction industry, that might mean:

Allocating to labor costs

Financial relief due to significant revenue decline

Eliminating debt

Boosting cash revenues

Purchasing new equipment

See If You Qualify

ERC qualifications for the construction industry

The construction industry is resilient and on the path to recovery after the challenges it encountered in 2020 and 2021. Despite limitations and temporary halts to non-essential construction jobs in some states, there are opportunities to bounce back. Our mission is to support and assist eligible construction businesses in their recovery journey.

How we’ve helped thousands of eligible businesses, including construction companies, claim the ERC:

1

Qualifying them for government shutdown orders

2

Determining eligibility under limited commerce

3

Outlining COVID’s impact beyond reduced revenue

With the ERC, your qualifying construction company could receive a refund to recover resources, increase revenue, and retain its best employees.

See If You Qualify

It's easy to get started and see if you are eligible for the ERC

If you’re in the construction industry and you haven’t heard of the ERC, you’re not alone. In fact, around 90% of construction firms have yet to claim their ERC, and 64% hadn’t even heard of it.

Why is this? Originally, the ERC was not accessible for businesses that took part in PPP funding. This means that many employers took out PPP loans in 2020 but skipped the ERC.

However, the program has undergone expansion and under new rules, you can claim ERC and PPP. This was removed by Congress in the Consolidated Appropriations Act (CAA) of 2021.

Frequently Asked Questions

No results found.

No items found.

Ready to start? Begin now and see if you qualify.

Get Started

Have additional questions? Chat with a team member and get your answers.

Chat Now