As part of the federal CARES Act, broadcasters are eligible for Employee Retention Tax Credits for payroll expenses not covered already by a Payroll Protection Program (PPP) loan. The additional assistance is the result of efforts by the National Association of Broadcasters and IBA to help stations whose businesses were severely impacted by the pandemic.
“Broadcasters can amend quarterly tax filings from January 2020 through June 2021, for periods they did not receive PPP if they meet just one of the following two criteria. In 2020, you’d be eligible if there was a partial or full federal, state or locally mandated shutdown of business that affected your company. Or, you’d be eligible if your quarterly gross revenue was 50% less than the same quarter in 2019. And for 2021 (through June 30), you’d be eligible if there was a partial or full federal, state or locally mandated shutdown of business that affected your company or if your quarterly gross revenue was 20% less than the same quarter in 2019. Lastly, this is a refundable tax credit – meaning that you could get cash back and not a credit going forward,” said IBA Executive Director Dave Arland.
The NAB’s summary should be useful when working with the IRS and your tax accountant to take advantage of the benefits.