Lights, Camera, Tax Credits! The ERTC for the Entertainment Industry

January 18, 2024
Dayes Law Firm

The Employee Retention Tax Credit, also known as the ERTC or ERC, can make an impact on pretty much every industry. The refunds business owners could see thanks to the ERTC can help businesses in any field, including the entertainment industry, which definitely faced some major challenges thanks to the COVID-19 pandemic.

How the ERTC Plays a Role in the Entertainment Industry

If you haven’t heard of or researched the ERTC yet, here is a brief introduction. The ERTC is a refundable payroll tax credit certain businesses can claim on qualified wages paid to their employees if they kept staff on their payroll despite significant financial setbacks during the height of the COVID-19 pandemic. 

Initially, the ERTC was for eligible wages paid between March 12, 2020, and December 31, 2020. The Consolidated Appropriations Act (CAA) extended the length of the ERTC program for the first time, through June 30, 2021. 

The American Rescue Plan Act of 2021 (ARPA) extended the Employee Retention Tax Credit through December 31, 2021, then the Infrastructure Investment and Jobs Act later changed the rules so that the ERTC instead applied to wages paid through September 30, 2021. (Except for Recovery Startup Businesses, which were still eligible to claim the ERTC for wages paid after June 30, 2021, and before January 1, 2022.)

Because businesses could potentially receive up to $26,000 per employee through the ERTC program, it can play a major role in boosting businesses in different industries. The tax credit is available to employers that experienced either a full or partial shutdown of operations due to a governmental order related to COVID-19, or to businesses that experienced a decline in gross receipts in 2020 or 2021 as compared to the same quarter in 2019. Many businesses in the entertainment industry encountered those challenges and may qualify. 

For instance, businesses in the entertainment industry grappled with social distancing rules, shutdowns, limitations on crowd sizes, restrictions regarding letting patrons buy and consume food and drinks indoors, increased sanitation protocols, and so much more. It took a long time for many businesses to bounce back from the early months of the pandemic – and indeed, many are still struggling – but the entertainment industry clearly encountered some of the hardest adjustments.

But the ERTC could be the light at the end of the tunnel for these businesses. Employers can potentially claim thousands of dollars through the tax credit program, which can be used for any number of projects. That money could help theaters, arenas, opera houses, and other places that fall within the entertainment category to rebuild, fund new projects, upgrade equipment, and hire new employees – the sky’s really the limit with what the ERTC could do for these enterprises. 

Getting Assistance with the ERTC

Dayes Law Firm wants to help the entertainment industry rebuild after the height of the COVID-19 pandemic when so many businesses in that space suffered greatly. If you are a business owner interested in claiming the Employee Retention Tax Credit, but you need a little assistance with applying, we can help.

The team of experienced tax attorneys at our firm can assist you with applying retroactively for the ERTC now. Dayes Law Firm and our partner firms already worked to help other businesses apply for over $250 million in ERTC claims to date, and there are still months left to claim this important tax credit. 
Please feel free to call us at (800) 503-2000 or contact us online to learn more. We can offer a free, no-obligation consultation to discuss any of your questions or concerns about the Employee Retention Tax Credit and how it may play a role in benefiting your entertainment industry business. Call today to learn more!