SALT Alert: North Carolina Business Recovery Grant – Submit Phase 2 Applications by 6/1/2022

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SALT Alert: North Carolina Business Recovery Grant – Submit Phase 2 Applications by 6/1/2022

North Carolina Business Recovery Grant

Submit Phase 2 Applications by 6/1/2022

 

North Carolina companies that have been negatively impacted by the Covid-19 pandemic may be eligible for relief under Phase 2 of North Carolina’s Business Recovery Grant Program (BRG). 

 

On May 2, the North Carolina Department of Revenue began accepting applications for Phase 2 of the BRG. The deadline for applications is Wednesday, June 1. 

 

As with Phase 1, the Phase 2 grants are available to businesses that have incurred at least a 20% decrease in their North Carolina gross revenue from the pre-COVID period (3/1/19-2/29/20) to the post-COVID period (3/1/20-2/28/21).  Both Phases offer two types of grants:

 

• A Hospitality Grant for eligible arts, entertainment, or recreation business, as well as an eligible accommodation or food service business such as a hotel, restaurant, or bar (NAICS code 71 and 72).

 

• A Reimbursement Grant for eligible business not classified in NAICS Code 71 and 72.

 

Both grants are capped at a maximum of $500,000 per eligible taxpayer.

 

Legislation signed by Governor Cooper in March 2022 expanded the eligibility requirements of the BRG, making grants available to more North Carolina businesses in Phase 2. Eligibility is now extended to sole proprietors and corporate entities that do not file NC sales tax returns, allowing a broader variety of tax forms to calculate eligible loss, including:

 

• Line 1 OR lines 4-8 of Form E-500

• Line 1a of Form 1065

• Line 1a of Form 1120/1120-S

• Line 1 of Form 1040 Schedule C

• Line 9 of Form 1040 Schedule F

 

Businesses that received a Phase 1 grant also may be eligible for additional grant money in Phase 2 (up to the $500,000 maximum), due to the legislation’s expansion of the types of tax forms that can now be used to calculate the eligible loss.

 

Further, businesses that didn’t qualify for a Phase 1 Reimbursement Grant due to having received some other form of Covid-19 relief will now be eligible for a Phase 2 Reimbursement Grant.

 

Please reach out to WR SALT if your business files North Carolina income tax or sales/use tax returns and you think it may qualify for this grant.

 

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We’re here to help!

WebsterRogers’ State and Local Tax (SALT) Team is here to answer any questions you have about this grant program, and is avilable to assist with completing an application.  Reach out to the WebsterRogers’ SALT Team today to discuss your situation and how we can help.