TaxBandits Knowledge Base

What is a recovery startup business?

A company that started the business during the pandemic is eligible for the credit under the American Rescue Plan Act. If your startup meets the following requirements, it might be qualified.

• Your business was established on or after February 15, 2020.
• During the tax years 2020 and 2021, your annual gross receipts do not exceed $1 million.
• You have one or more W2 employees, excluding owners and immediate family.