Nebraska Car Dealership Employee Retention Tax Credit for NE Auto Dealers (revised 2024)

Cover Image Credit: / Serezniy / Disaster Loan Advisors.

Nebraska car dealerships, auto dealers, new and used truck dealers, and other automotive related vehicle businesses in NE that were impacted financially by the COVID pandemic will automatically qualify certain periods of time for the employee retention tax credit refund in NE.

Nebraska went into lockdown mode in March 2020 when Nebraska Governor Ricketts issued mandated executive orders that forced the closure of car businesses throughout Nebraska, including most car, truck, and automobile related businesses. Many car dealership employees in Nebraska were temporarily out of work from closures in NE.

This caused Nebraska auto dealers, auto groups, dealership owners and investors from automotive related companies with multiple rooftop locations in Nebraska to suffer financially during 2020 and 2021 from these executive orders in NE.

When Nebraska slowly started to reopen, business capacity was restricted and limited in Nebraska. Plus, many NE consumers were staying at home, not driving anywhere, and not shopping for new or used cars and trucks in NE.

Overall, Nebraska has an estimated 156 new car franchised brand dealerships in NE that were affected. This NE data is according to the National Automobile Dealers Association (NADA) Nebraska Auto Report.

Nebraska Car Dealership Retail Economic Data Statewide in NE:

– 156 new car dealerships in NE.

– $6.4 billion in total Nebraska car dealership sales.

– $353 million in NE state sales tax paid on vehicle sales.

– 15,287 workers employed at dealerships in Nebraska.

– 7,296 direct worker jobs and 799 indirect jobs in NE.

– Average of 47 Employees (W-2) per auto dealership.

– Average of $73,684 in annual earnings per worker.

– $538 Million in total Employee Payroll for Nebraska new car dealerships.

– $154 Million in state and federal income and payroll taxes paid in NE.

Other Nebraska new car and used car data statistics in NE:

– Nebraska New Car & Truck Dealers Association (NNCTDA)

– Nebraska Independent Auto Dealers Association (NEIADA)

Nebraska dealerships in cities affected the most included Grand Island, Lincoln, Omaha, Sioux City, and other locations in Nebraska.

See how your Nebraska automotive related business might qualify for the Nebraska Employee Retention Credit IRS Tax Refund for your car, truck, vehicle business in NE. Schedule Your Free Nebraska Car Dealership ERC Consultation today.

Key ERC Credit Takeaways You Will Learn:

  • Nebraska Car Dealerships Qualify: Auto dealers in NE can apply for the Employee Retention Tax Credit.
  • COVID-19 Impact Necessary: Eligibility requires proof of business disruption by the pandemic.
  • Significant Tax Relief: The tax credit provides substantial financial support for qualified dealerships.
  • Automotive Business Inclusion: The credit isn’t limited to sales; service-related businesses qualify too.
  • Expert Assistance Available: Professional advice can help NE car dealers navigate the ERC process.

See Important 2024 Employee Retention Tax Credit Deadline Information at the Bottom of This Article.

Table of Contents

Nebraska Employee Retention Tax Credit for Car Dealerships, Auto Dealers and the Automotive Industry in NE

Nebraska car dealerships, automotive dealerships and automotive related businesses in NE are eligible to claim the Employee Retention Credit (ERC). They can receive up to 50% of their qualified wages paid between March 12th, 2020, and December 31st, 2020, in the form of a refundable tax credit from the IRS.

Nebraska car dealerships and related businesses that were established before February 15th, 2020, can receive a refundable tax credit amounting to 70% of qualified salaries and wages paid between January 1st, 2021, and September 30th, 2021. For NE auto dealers or car dealerships started or acquired after that date (referred to as a Recovery Start-up business), they are eligible for employee wage reimbursement up until December 31st, 2021.

The employee retention credit may be retroactively claimed for 2020 and 2021, through 2023, 2024, and 2025 for your car dealership, auto dealerships or automotive related business in Nebraska.

NE Car Dealership Employee Retention Credit, How it Works for Auto Dealers in Nebraska

With the Nebraska requirements and amount of the ERTC tax credits continually changing with the ERC program, NE car dealerships, auto dealers, and automotive dealership owners and principals may find it difficult to understand if they qualify and how much they can claim. 

To maximize the benefits from this Nebraska automotive employee retention tax credit, you must understand which quarters are eligible as well as which employees, wages, and payments meet the criteria for receiving the tax credit for your dealership in NE.

Nebraska Employee Retention Credit Eligibility Requirements for Auto Dealers, Automotive Dealerships and Car Dealerships in NE

The Nebraska automotive dealership industry can take advantage of the employee retention credit in several ways.

For a Nebraska car dealership related business to be eligible for the program, it must have gone through an entire or partial closure because of COVID-19 government regulations or any other kind of government-mandated shut down during certain periods in either 2020 or 2021 as a result of this global pandemic.

Another way is for your Nebraska car dealership entity to demonstrate that it has had either a 2020 quarter with gross receipts at least 50% lower than the same quarter in 2019, or in 2021, quarters with 20% fewer gross receipts compared to the corresponding quarters of 2019. Each three-month period of 2020 and 2021 should be compared to its equivalent month period in 2019.

In Nebraska, Did Your New Car, Used Car, Truck Dealership or Automotive Business Experience any of These?

Full or Partial Shutdown of Your Car Dealership Location in NE

If your car dealership or automotive dealership location in NE was fully or partially shut down for even a few days due to COVID-19, it would qualify your Nebraska auto dealership for the ERC tax credit. There are multiple other ways to qualify and claim your Nebraska ERC credit for your NE car dealership to help financially recover. Even if your Nebraska automotive company received an SBA Paycheck Protection Program (PPP) loan, you may still qualify.

Nebraska Car Dealership Vehicle Sales Decreased in NE

Did your NE dealership sales drop? Not sell as many new or used vehicle units as compared to 2019? In this case, if you can show nominal harm of 10% or more in declining sales or units for your Nebraska automotive business, you qualify. This is a good example for you to claim and receive the ERC tax credit in Nebraska.

Limitations on Car Showroom or Auto Repair Service Capacity Nebraska

Due to the shutdown and partial-shutdown in Nebraska, your automotive operations greatly reduced capacity due to government mandates and orders. This means that even if your NE car dealership or automotive repair business did not meet adequate revenue losses, you can still be eligible for the ERTC tax credit from mandated Nebraska restrictions from executive orders.

Nebraska Impacted Business and Consumer Travel in NE

The inability of Nebraska residents, tourists, and business travelers to drive around in Nebraska lead to substantial losses. With many public events and gatherings in NE canceled or postponed, caused most Nebraska residents to stay at home. This created massive lost sales and revenue potential for many car dealerships in Nebraska. Therefore, you may qualify for the ERC tax credit if your automotive business has been affected by these limitations in NE.

NE New or Used Car and Truck Vehicle Cancellations and Refunds Due to COVID in Nebraska

Maybe your NE automotive business had vehicle buyers wanting to cancel their new or used car or truck order or car lease, and did not want to take delivery or renew their lease. When Nebraska shutdown, and then faced many business capacity and travel restrictions, consumers canceled travel plans and were not driving as much, according to the Nebraska Department of Transportation. This caused many NE automotive dealership operations to refund deposits and lose further revenue. This was a financial loss to the economy and auto dealers in Nebraska

No In-Person Selling or Face-to-Face Auto, Truck, Car Sales in NE

Due to the pandemic, NE auto dealers could not sell any cars or trucks during the shutdown periods. This was an obstacle for Nebraska auto dealers trying to accommodate new and used car buyers. The vehicle buying experience was taken away. If your NE automotive business dealt with this situation, or had severely limited business and operations capacity due to Nebraska mandated orders, your dealership will qualify for the ERC tax credit.

Nebraska Car Dealership Low Inventory Due to Shipping and Supply Chain Issues in NE

In Nebraska, automobile manufacturers continued to limit new vehicle production and inventories throughout 2021 and 2022 due to the semiconductor microchip shortage that began in early 2021. Nebraska franchised car dealerships were experiencing restricted new car and truck inventory at auto dealerships in NE and across the country. New vehicle inventory on the ground and in transit was consistently stuck at over one million vehicle units nationwide and in NE.

Calculating Your Nebraska Auto Dealer Employee Retention Credit for Car Dealerships in NE

Accurately calculating the Nebraska employee retention credit for your automotive dealership employees requires attention to detail, especially when it comes to determining your total payroll gross wages paid during each quarter to your workforce. Without accurately calculating this figure, you won’t be able to maximize the full tax benefits of this ERC credit. Therefore, having a comprehensive understanding of how best to calculate these figures is essential to maximize your car dealership related business tax credit in NE.

How Nebraska Car Dealerships, Auto Dealers, and Automotive Employers in NE Can Claim the Employee Retention Credit

Although the process of applying for the ERTC for your Nebraska company has changed a bit, there’s still time to claim your ERC tax refund. Remember that this window won’t be open forever. It will cease in 2023, 2024, and 2025 based on the past 2020-2021 quarter evaluations. Don’t worry about running out of funds either. These IRS business tax refunds are calculated using each business’ qualifications and financials. The only way you can miss out is by not filing prior to the given deadlines for your car dealership in Nebraska.

Conclusion and Summary for Nebraska Car Dealership, Auto Dealer, and Automotive Employee Retention Credit in NE

To ensure your Nebraska car dealership or automotive related business is in compliance with the Employee Retention Credit, it’s critical to have all original records, including payroll, W-2s, original 941’s filed, and other documents related to auto dealership employee wages. Additionally, any Nebraska government shutdown orders or restrictions on your Nebraska car dealership should be documented.

By understanding the rules of the employee retention credit, car dealerships, auto dealers, automotive businesses and companies in Nebraska can make sure they’re getting all the IRS tax credit benefits owed to them. The ERTC provides an opportunity for car dealerships affected by COVID-19 in Nebraska to recover some financial losses.

Nebraska Car Dealerships and Automotive Businesses Qualify for the Employee Retention Tax Credit (ERC / ERTC) in NE: Claim Up To a $26,000 Refund Per Dealership Employee for Your Automotive Business in NE

Disaster Loan Advisors™ can assist your Nebraska car dealership and automotive business with the complex and confusing Employee Retention Credit (ERC) and Employee Retention Tax Credit (ERTC) program, without you having to sacrifice an excessive percentage % of your hard-earned ERC refund. 

DLA doesn’t charge a percent % like many companies do. Our flat fee structure is fair and reasonable based on the amount of work involved. Keep More of Your Refund™ 

Depending on eligibility, car and truck dealership owners, automotive professionals, and auto dealer principals and partners can receive up to $26,000 per automotive workforce employee based on the number of W2 employees you had on the payroll in 2020 and 2021.

The ERC / ERTC Program is a valuable IRS tax credit you can claim for your automotive dealership in Nebraska.

Schedule Your Free Nebraska Automotive Employee Retention Credit Consultation to see what amount of employee retention credit tax refund you qualify for your car dealership in Nebraska.

ERC Deadline Urgency in 2024

April 15, 2024 Deadline for the 2020 ERC Tax Year

The deadline is coming up for the final opportunity to retroactively claim your business Employee Retention Credit for the past 2020 tax year. With the April 15, 2024 deadline fast approaching, we urge you; don’t let this final chance pass!

While not all businesses will qualify, as it depends on multiple factors per IRS Rules and Guidelines, you might be leaving significant financial relief on the table from prior COVID impact to your business during the past 2020 and 2021 business operation years.

Last year, in September 2023, the IRS temporarily paused processing ERC Claims for the remainder of last year. We at Disaster Loan Advisors (DLA) predicted this over one year ago when we made this ERC video warning business owners. See the ten-minute mark of the video for details. 


Even though the IRS has temporarily paused processing, you will still want to check eligibility and file now (if you qualify) because once the IRS will resume processing, ERC tax credit claims are processed in the order they are received.

If you haven’t previously filed for the ERC Credit, it is worth scheduling a phone call to at least explore your possible eligibility from both the past 2020 and 2021 business tax years. Contact us today for a deep-dive analysis to determine if your business qualifies one or more quarters from the 2020 and / or 2021 tax years.

Mark Monroe