Rhode Island Car Dealership Employee Retention Tax Credit for RI Auto Dealers

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

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

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

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

Overall, Rhode Island has an estimated 52 new car franchised brand dealerships in RI that were affected. This RI data is according to the National Automobile Dealers Association (NADA) Rhode Island Auto Report.

Rhode Island Car Dealership Retail Economic Data Statewide in RI:

– 52 new car dealerships in RI.

– $3.8 billion in total Rhode Island car dealership sales.

– $264 billion in RI state sales tax paid on vehicle sales.

– 5,789 workers employed at dealerships in Rhode Island.

– 3,203 direct worker jobs and 2,586 indirect jobs in RI.

– Average of 62 Employees (W-2) per auto dealership.

– Average of $80,704 in annual earnings per worker.

– $259 Billion in total Employee Payroll for Rhode Island new car dealerships.

– $64 Billion in state and federal income and payroll taxes paid in RI.

Other Rhode Island new car data statistics in RI:

– Rhode Island Automobile Dealers Association (RIADA)

Rhode Island dealerships in cities affected the most included Norwich, Providence, and other locations in Rhode Island.

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

Rhode Island Employee Retention Tax Credit for Car Dealerships, Auto Dealers and the Automotive Industry in RI

Rhode Island car dealerships, automotive dealerships and automotive related businesses in RI 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.

Rhode Island 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 RI auto dealers or car dealerhips 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 Rhode Island.

RI Car Dealership Employee Retention Credit, How it Works for Auto Dealers in Rhode Island

With the Rhode Island requirements and amount of the ERTC tax credits continually changing with the ERC program, RI 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 Rhode Island 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 RI.

Rhode Island Employee Retention Credit Eligibility Requirements for Auto Dealers, Automotive Dealerships and Car Dealerships in RI

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

For a Rhode Island 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 Rhode Island 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 Rhode Island, 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 RI

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

Rhode Island Car Dealership Vehicle Sales Decreased in RI

Did your RI 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 Rhode Island automotive business, you qualify. This is a good example for you to claim and receive the ERC tax credit in Rhode Island.

Limitations on Car Showroom or Auto Repair Service Capacity Rhode Island

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

Rhode Island Impacted Business and Consumer Travel in RI

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

RI New or Used Car and Truck Vehicle Cancellations and Refunds Due to COVID in Rhode Island

Maybe your RI 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 Rhode Island shutdown, and then faced many business capacity and travel restrictions, consumers canceled travel plans and were not driving as much, according to the Rhode Island Department of Transportation. This caused many RI automotive dealership operations to refund deposits and lose further revenue. This was a financial loss to the economy and auto dealers in Rhode Island

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

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

Rhode Island Car Dealership Low Inventory Due to Shipping and Supply Chain Issues in RI

In Rhode Island, 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. Rhode Island franchised car dealerships were experiencing restricted new car and truck inventory at auto dealerships in RI 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 RI.

Calculating Your Rhode Island Auto Dealer Employee Retention Credit for Car Dealerships in RI

Accurately calculating the Rhode Island 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 RI.

How Rhode Island Car Dealerships, Auto Dealers, and Automotive Employers in RI Can Claim the Employee Retention Credit

Although the process of applying for the ERTC for your Rhode Island 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 Rhode Island.

Conclusion and Summary for Rhode Island Car Dealership, Auto Dealer, and Automotive Employee Retention Credit in RI

To ensure your Rhode Island 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 Rhode Island government shutdown orders or restrictions on your Rhode Island car dealership should be documented.

By understanding the rules of the employee retention credit, car dealerships, auto dealers, automotive businesses and companies in Rhode Island 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 Rhode Island to recover some financial losses.

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

Disaster Loan Advisors™ can assist your Rhode Island 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 Rhode Island.

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

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