M-Construction

From labor shortages to supply chain disruptions and project delays, the construction industry continues to be affected by the pandemic.

How we've helped over 14,000 eligible businesses, including construction companies, claim the ERC:

Qualifying them for government shutdown orders

Determining eligibility under limited commerce

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.

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.

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However, businesses that experienced partially suspended operations due to a government mandate may qualify for the ERC under Limited Commerce.

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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

• A government order significantly affected operations

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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

• Employee hours spent on the suspended portion aren’t less than 10% of total employee hours performed

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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.

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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.

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The ERC for construction companies

From labor shortages to supply chain disruptions and project delays, the construction industry continues to be affected by the pandemic.

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Frequently Asked Questions