Yes, churches and other religious organizations may be eligible to receive the Employee Retention Credit (ERC).
If they have been affected by government-mandated limitations on the number of people allowed to gather or have seen a significant decrease in their gross receipts.
Churches and not-for-profit organizations can qualify for the ERC tax credit, if they meet certain criteria. To be eligible, nonprofit organizations must:
- Have experienced a significant decline in gross receipts compared to a prior year quarter. A significant decline is defined as a decline of 20% or more in gross receipts.
- Have operations fully or partially suspended due to a government order related to COVID-19.
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References
- Internal Revenue Service (IRS)
https://www.irs.gov/coronavirus/employee-retention-credit - The CARES Act
https://www.congress.gov/116/bills/hr748/BILLS-116hr748enr.pdf - American Institute of CPAs
https://www.aicpa.org/content/dam/research/research/taxpolicyandeconomics/downloadabledocuments/2021/2021-03-03-employee-retention-credit.pdf - National Federation of Independent Business (NFIB)
https://www.nfib.com/content/legal-compliance/labor-law/the-employee-retention-tax-credit/ - FAQs: Employee Retention Credit under the CARES Act
Internal Revenue Service (IRS)
https://www.irs.gov/newsroom/faqs-employee-retention-credit-under-the-cares-act - Employee Retention Tax Credit: What You Need to Know
U.S. Department of the Treasury
https://home.treasury.gov/system/files/136/Employee-Retention-Tax-Credit.pdf