Theaters & Live Arts

The arts industry was one of the first to suffer during the pandemic—and one of the hardest hit. Many venues—including movie theaters, concert halls, and stadiums—closed due to governmental orders, then re-opened only to suffer capacity restrictions and social distancing procedures. Unfortunately, many arts organizations, incorrectly believe that they are ineligible for the very real opportunity to access significant cash relief in a refundable employee payroll tax credit—the Employee Retention Credit (ERC).

One way for employers in the arts industry to establish ERC eligibility is by showing that the business suffered a reduction in gross receipts. 1. Tax Year 2021 (Quarters 1, 2, and 3):

Employer is eligible if business’s gross receipts are more than 20% down from the gross receipts in the same calendar quarter of 2019.2. Tax Year 2020 (Quarters 1 through 4):

Employer is eligible if business’s gross receipts are more than 50% down from the gross receipts in the same calendar quarter of 2019.