On September 29, 2017, President Trump signed H.R. 3823: Disaster Tax Relief and Airport and Airway Extension Act of 2017 into law. Several tax benefits are outlined in the Act. The Employee Retention Tax Credit is a tax credit that can be utilized by employers left inoperable by the devastation caused by Hurricanes Harvey, Irma, and Maria. The Act allows employers to claim a tax credit equal to 40%, up to $6,000 of the wages paid to an employee, if their location of employment was in a core disaster area. The credit also applies to wages paid during the time that the business remained inoperable. Eligible areas are areas declared “hurricane disaster areas” by the President before September 21, 2017.
Businesses that were or remain inoperable during the following periods of time may qualify for the Employee Retention Tax Credit:
- Hurricane Harvey: August 23, 2017 – January 1, 2018
- Hurricane Irma: September 4, 2017 – January 1, 2018
- Hurricane Maria: September 16, 2017 – January 1, 2018
TECHNICAL INFORMATION CONTACT:
Matt Lowell
Manager
Ryan
321.251.2924
matt.lowell@ryan.com