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Tax Experts Since 2008

Employee Retention Credit  (ERC) for Construction Companies

Do you own a construction company impacted financially by the COVID-19 pandemic? The Employee Retention Tax Credit (ERC) is available to the construction industry for businesses including:

  • Real Estate Developers

  • Architecture/Design firms

  • Engineering firms

  • Construction management companies

  • General contractors

  • Specialty contractors

  • Material Suppliers

  • Equipment Lessers

 

Qualifying construction companies should apply as soon as possible to receive their credit using the team of certified ERC specialists at Five Star ERC Experts. There is still time before the deadline for ERC, but applying as soon as possible will help you receive your much needed Coronavirus aid faster.

Construction Workers

ERTC Qualifications for Construction

If you qualify for ERTC for the 2020 or 2021 tax year, you still have time to apply. To apply, construction companies must have paid qualified wages to W-2 employees. These employees can include but are not limited to:

  • Project managers

  • Construction workers or construction laborers

  • Construction superintendents

  • Construction estimators

  • Construction inspectors

  • Equipment operators

  • Journeymen electricians

Any full-time or part-time employees paid qualified wages during the 2020 or 2021 tax years are eligible. Each employee could earn your business up to $21,000.

Full or Partial Suspension of Business Operations

Any ​​residential, commercial, heavy civil, industrial, and environmental construction companies can apply for the Employee Retention Credit if their business operations were fully or partially suspended due to government regulations or restrictions. For construction companies, this could include:

  • Having to cancel or postpone projects due to COVID restrictions

  • Inability to receive parts and equipment due to suppliers being shut down

  • Social distancing mandates limited crew size for a project

 

In addition, some projects and operating hours may have been impacted by additional cleaning and safety protocols required due to COVID-19 regulations. If businesses were not fully or partially suspended due to government mandates, they may still qualify if they saw a decline in gross receipts over 50% in the 2020 and/or 2021 tax year.

Consult with an Expert for Your ERC Application

Not all ERC Specialists offering consulting services are certified. At Five Star ERC Experts, we only work with a team of certified tax attorneys and accountants to ensure that you are fully eligible before applying. There are plenty of ERC scams trying to apply for construction companies that do not qualify. Avoid the scams and apply with our certified team experienced in helping construction companies just like yours apply.

Calculating Employee Qualified Wages

Qualified wages are W-2 wages paid to employees during the 2020 or 2021 tax years. This includes health benefits paid to employees. Even if your construction company was temporarily shut down due to the pandemic, paid wages may still be eligible. 

For example, you own a construction company that had to suspend business operations indefinitely between March 2020 and September 2020. While your employees stayed home due to government COVID restrictions, you paid wages to the construction workers, even though they could not work. These wages would qualify for the ERC. 

Calculate your Employee Retention Tax Credit to determine how much you could earn per employee before applying. 

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