How the Employee Retention Credit Can Help Construction Businesses Recover

How the Construction Industry Was Affected During the Pandemic

During the COVID-19 pandemic, the construction industry dealt with unpredictable changes in demand, supply chain disturbances, and labor deficits. Faced with these hurdles, the construction industry proved its resilience by rapidly adapting to new protocols, utilizing digital solutions, and rethinking traditional operational strategies.

975,000

construction jobs lost in April 2020.?

24%

decline in new nonresidential building construction in 2020.?

85%?

of contractors negatively impacted by COVID-19.

Did Your Construction Business Make Significant Investments in Technology or Experience Labor Shortages During COVID?

If so, it may qualify for the Employee Retention Credit (ERC), a refundable payroll tax credit designed to support construction companies that retained employees during COVID-19. Eligible companies can get up to $210,000 per 10 eligible employees.

How the Employee Retention Credit Can Help Construction Businesses Recover

The construction industry, an economic powerhouse, has significantly felt the impact of the COVID-19 pandemic. The pandemic disrupted many construction sectors, including residential, commercial, industrial, environmental, and many more.?

The Employee Retention Credit (ERC) can serve as a potent tool for construction businesses reeling from the impact of the COVID-19 pandemic. The ERC provides a substantial refundable tax credit that can provide much-needed capital to help companies reinvest in their products and services.

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Three Ways the ERC Can Benefit Construction Businesses

The ERC is not just a program—it’s a lifeline that offers your business the opportunity to reclaim what you lost during the pandemic. If you’re also looking to reduce your tax burden, the ERC could help. However, if you don’t have outstanding tax liabilities, you can use the money how you see fit. Let’s explore some of those benefits.

1. Cash Flow Boost: Consider the ERC an immediate financial incentive if you qualify. It provides a potential influx of funds that can be utilized to keep your business running smoothly and retain your workforce during challenging times.
2. Technological Advancements: The ERC is an excellent resource to capitalize on investing in new technologies. In an industry like yours, staying up-to-date with the latest technology—3D printing, robotics, or augmented reality—can be the difference between leading and trailing behind in the market.
3. Operating Costs: Running a construction business involves many costs, from paying your staff to putting gas in your trucks. The ERC has the potential to alleviate a portion of these expenses, freeing up resources that can be put toward other growth-centric activities.

To find out more or to get started, click Employee Retention Tax Credit

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