South Carolina car dealerships, auto dealers, new and used truck dealers, and other automotive related vehicle businesses in SC that were impacted financially by the COVID pandemic will automatically qualify certain periods of time for the employee retention tax credit refund in SC.
South Carolina went into lockdown mode in March 2020 when South Carolina McMaster issued mandated executive orders that forced the closure of car businesses throughout South Carolina, including most car, truck, and automobile related businesses. Many car dealership employees in South Carolina were temporarily out of work from closures in SC.
This caused South Carolina auto dealers, auto groups, dealership owners and investors from automotive related companies with multiple rooftop locations in South Carolina to suffer financially during 2020 and 2021 from these executive orders in SC.
When South Carolina slowly started to reopen, business capacity was restricted and limited in South Carolina. Plus, many SC consumers were staying at home, not driving anywhere, and not shopping for new or used cars and trucks in SC.
Overall, South Carolina has an estimated 255 new car franchised brand dealerships in SC that were affected. This SC data is according to the National Automobile Dealers Association (NADA) South Carolina Auto Report.
South Carolina Car Dealership Retail Economic Data Statewide in SC:
– 255 new car dealerships in SC.
– $17.2 billion in total South Carolina car dealership sales.
– $879 million in SC state sales tax paid on vehicle sales.
– 34,235 workers employed at dealerships in South Carolina.
– 15,823 direct worker jobs and 18,412 indirect jobs in SC.
– Average of 62 Employees (W-2) per auto dealership.
– Average of $84,812 in annual earnings per worker.
– $1.3 Billion in total Employee Payroll for South Carolina new car dealerships.
– $453,360,538 in state and federal income and payroll taxes paid in SC.
Other South Carolina new car and used car data statistics in SC:
– South Carolina Automobile Dealers Association (SSCDA)
– South Carolina Independent Auto Dealers Association (SCIADA)
South Carolina dealerships in cities affected the most included Augusta, Charleston, Charlotte, Columbia, Florence, Greenville, Hilton Head Island-Bluffton-Beaufort, Myrtle Beach, Spartanburg, Sumter, and other locations in South Carolina.
See how your South Carolina automotive related business might qualify for the South Carolina Employee Retention Credit IRS Tax Refund for your car, truck, vehicle business in SC. Schedule Your Free South Carolina Car Dealership ERC Consultation today.
Key ERC Credit Takeaways You Will Learn:
- SC Car Dealerships and ERC: SC auto dealers can benefit from the Employee Retention Credit.
- ERC Extends to 2021: The ERC is available for eligible businesses through 2021.
- Maximize ERC Claims: Auto dealers can claim up to $7,000 per employee per quarter.
- ERC Impact on PPP Loans: ERC can be claimed even if you received PPP loans.
- Expert ERC Assistance: Professional help is available to maximize your ERC claim.
See Important 2024 Employee Retention Tax Credit Deadline Information at the Bottom of This Article.
South Carolina Employee Retention Tax Credit for Car Dealerships, Auto Dealers and the Automotive Industry in SC
South Carolina car dealerships, automotive dealerships and automotive related businesses in SC 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.
South Carolina 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 SC 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 South Carolina.
SC Car Dealership Employee Retention Credit, How it Works for Auto Dealers in South Carolina
With the South Carolina requirements and amount of the ERTC tax credits continually changing with the ERC program, SC 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 South Carolina 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 SC.
South Carolina Employee Retention Credit Eligibility Requirements for Auto Dealers, Automotive Dealerships and Car Dealerships in SC
The South Carolina automotive dealership industry can take advantage of the employee retention credit in several ways.
For a South Carolina 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 South Carolina 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 South Carolina, 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 SC
If your car dealership or automotive dealership location in SC was fully or partially shut down for even a few days due to COVID-19, it would qualify your South Carolina auto dealership for the ERC tax credit. There are multiple other ways to qualify and claim your South Carolina ERC credit for your SC car dealership to help financially recover. Even if your South Carolina automotive company received an SBA Paycheck Protection Program (PPP) loan, you may still qualify.
South Carolina Car Dealership Vehicle Sales Decreased in SC
Did your SC 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 South Carolina automotive business, you qualify. This is a good example for you to claim and receive the ERC tax credit in South Carolina.
Limitations on Car Showroom or Auto Repair Service Capacity South Carolina
Due to the shutdown and partial-shutdown in South Carolina, your automotive operations greatly reduced capacity due to government mandates and orders. This means that even if your SC car dealership or automotive repair business did not meet adequate revenue losses, you can still be eligible for the ERTC tax credit from mandated South Carolina restrictions from executive orders.
South Carolina Impacted Business and Consumer Travel in SC
The inability of South Carolina residents, tourists, and business travelers to drive around in South Carolina lead to substantial losses. With many public events and gatherings in SC canceled or postponed, caused most South Carolina residents to stay at home. This created massive lost sales and revenue potential for many car dealerships in South Carolina. Therefore, you may qualify for the ERC tax credit if your automotive business has been affected by these limitations in SC.
SC New or Used Car and Truck Vehicle Cancellations and Refunds Due to COVID in South Carolina
Maybe your SC 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 South Carolina shutdown, and then faced many business capacity and travel restrictions, consumers canceled travel plans and were not driving as much, according to the South Carolina Department of Transportation. This caused many SC automotive dealership operations to refund deposits and lose further revenue. This was a financial loss to the economy and auto dealers in South Carolina
No In-Person Selling or Face-to-Face Auto, Truck, Car Sales in SC
Due to the pandemic, SC auto dealers could not sell any cars or trucks during the shutdown periods. This was an obstacle for South Carolina auto dealers trying to accommodate new and used car buyers. The vehicle buying experience was taken away. If your SC automotive business dealt with this situation, or had severely limited business and operations capacity due to South Carolina mandated orders, your dealership will qualify for the ERC tax credit.
South Carolina Car Dealership Low Inventory Due to Shipping and Supply Chain Issues in SC
In South Carolina, 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. South Carolina franchised car dealerships were experiencing restricted new car and truck inventory at auto dealerships in SC 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 SC.
Calculating Your South Carolina Auto Dealer Employee Retention Credit for Car Dealerships in SC
Accurately calculating the South Carolina 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 SC.
How South Carolina Car Dealerships, Auto Dealers, and Automotive Employers in SC Can Claim the Employee Retention Credit
Although the process of applying for the ERTC for your South Carolina 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 South Carolina.
Conclusion and Summary for South Carolina Car Dealership, Auto Dealer, and Automotive Employee Retention Credit in SC
To ensure your South Carolina 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 South Carolina government shutdown orders or restrictions on your South Carolina car dealership should be documented.
By understanding the rules of the employee retention credit, car dealerships, auto dealers, automotive businesses and companies in South Carolina 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 South Carolina to recover some financial losses.
South Carolina Car Dealerships and Automotive Businesses Qualify for the Employee Retention Tax Credit (ERC / ERTC) in SC: Claim Up To a $26,000 Refund Per Dealership Employee for Your Automotive Business in SC
Disaster Loan Advisors™ can assist your South Carolina 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 South Carolina.
Schedule Your Free South Carolina Automotive Employee Retention Credit Consultation to see what amount of employee retention credit tax refund you qualify for your car dealership in South Carolina.
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.
TAKE ACTION NOW IN 2024
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.
As a leading dedicated member of the Tax and Accounting Team at Disaster Loan Advisors™, Mark focuses on unlocking the ERC Tax Credit's potential for eligible firms that qualify, providing strategic advice, and detailed guidance to ensure substantial financial recovery and growth. His methodical approach to client engagement includes comprehensive deep-dive analysis, customized consultation and guidance, and a commitment to achieving tangible results for each business served.
Disaster Loan Advisors™ (DLA) offers a comprehensive suite of services designed to navigate the complexities of the Employee Retention Tax Credit (ERC) program, ensuring that qualified businesses leverage the maximum possible benefit with minimum hassle. Unlike some firms that charge exorbitant contingency or percentage-based fees (often between 10% to 30% of your ERC refund), DLA operates on a fair and reasonable, transparent flat-fee structure that aligns with the IRS's guidelines.
If you are looking for an ERC Company that believes in providing professional ERC Services and value for small business owners, in exchange for a fair, reasonable, and ethical fee for the amount of work required, Disaster Loan Advisors™ is a good fit for you. STAY SAFE. STAY COMPLIANT. KEEP MORE OF YOUR REFUND.™
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