North Carolina Job Retention Grant program applications due Sept. 1
TAX ALERT |
Authored by RSM US LLP
On July 1, 2020, North Carolina Gov. Roy Cooper signed House Bill 1023 providing for a number of COVID-19 relief measures to state businesses, including a new Job Retention Grant administered by the North Carolina Economic Investment Committee. The purpose of the grants are to provide support to businesses that experienced disruption during the pandemic, but that did not participate in the federal Paycheck Protection Program (PPP), the federal Main Street Lending Program or the North Carolina Rapid Recovery Loan Program. Eligible taxpayers must apply by Sept. 1, 2020.
General eligibility and grant amounts
The grant program is available to private businesses and certain nonprofits. The business must have employed at least 90% of the number of full-time employees during the March 1, 2020 through May 31, 2020 period (COVID period) as the business employed for the pay period ending on or about Feb. 28, 2020. Additionally, the business must demonstrate that it experienced an “economic loss” of 10% of sales during the COVID period compared with the same period in 2019, or for nonprofits, 10% of gross receipts. Businesses that did not exist during the COVID period in 2019 are not eligible for the grant program. Finally, the business could not have participated in other relief programs as described above, even if for example, the business expects to repay state rapid recovery loans.
The maximum grant available is up to two months of average monthly payroll costs form 2019, plus an additional 25%. The grant is capped at $250,000 per applicant. Total grants awarded cannot exceed the Job Retention Grant’s program funding of $15,000,000. If total grants requested by all qualified applicants exceeds that amount, each grant will be reduced proportionally to allow for all applicants to benefit.
Takeaways
Business that may qualify for the grant program should begin preparing as soon as possible. Applications require a number of documents and support, including payroll information, state wage reports and federal wage statements. There are also a number of nuanced considerations including calculating eligible payroll costs and determining whether there are any other excluding qualifications to receive the grants.
The Sept. 1, 2020 application deadline is quickly approaching. North Carolina businesses that did not receive federal PPP funds, participate in the federal Main Street Lending Program or receive state rapid recovery loans should discuss the North Carolina Job Retention Grant program with their tax advisers.
Let's Talk!
Call us or fill out the form below and we'll contact you to discuss your specific situation.
This article was written by Rob Calafell, Rob Modzelewski, Matthew McDowell and originally appeared on 2020-08-07.
2020 RSM US LLP. All rights reserved.
https://rsmus.com/what-we-do/services/tax/state-and-local-tax/income-and-franchise/north-carolina-job-retention-grant-program-applications-due-sept.html
The information contained herein is general in nature and based on authorities that are subject to change. RSM US LLP guarantees neither the accuracy nor completeness of any information and is not responsible for any errors or omissions, or for results obtained by others as a result of reliance upon such information. RSM US LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect information contained herein. This publication does not, and is not intended to, provide legal, tax or accounting advice, and readers should consult their tax advisors concerning the application of tax laws to their particular situations. This analysis is not tax advice and is not intended or written to be used, and cannot be used, for purposes of avoiding tax penalties that may be imposed on any taxpayer.
RSM US Alliance provides its members with access to resources of RSM US LLP. RSM US Alliance member firms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each is separate and independent from RSM US LLP. RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tax, and consulting firms. Members of RSM US Alliance have access to RSM International resources through RSM US LLP but are not member firms of RSM International. Visit rsmus.com/about us for more information regarding RSM US LLP and RSM International. The RSM logo is used under license by RSM US LLP. RSM US Alliance products and services are proprietary to RSM US LLP.
![RSM-US-Alliance-Logo-Stacked-RGB-300x208-1](https://jacksonthornt.wpenginepowered.com/wp-content/uploads/2020/03/RSM-US-Alliance-Logo-Stacked-RGB-300x208-1.png)
Jackson Thornton is a proud member of RSM US Alliance, a premier affiliation of independent accounting and consulting firms in the United States. RSM US Alliance provides our firm with access to resources of RSM US LLP, the leading provider of audit, tax and consulting services focused on the middle market. RSM US LLP is a licensed CPA firm and the U.S. member of RSM International, a global network of independent audit, tax and consulting firms with more than 43,000 people in over 120 countries.
Our membership in RSM US Alliance has elevated our capabilities in the marketplace, helping to differentiate our firm from the competition while allowing us to maintain our independence and entrepreneurial culture. We have access to a valuable peer network of like-sized firms as well as a broad range of tools, expertise and technical resources.
For more information on how Jackson Thornton can assist you, please contact us.