Did you know cannabis companies are eligible for ERC tax credit?

Cannabis companies can qualify for ERC tax credits

DID YOU KNOW?

Cannabis companies can qualify for ERC tax credits up to $26,000 per employee.

The Employee Retention Credit (ERC) was created by the bipartisan CARES ACT to help small to medium sized businesses and reward those who kept employees on the payroll during the pandemic.

  • Cannabis companies are eligible.
  • The ERC is a payroll tax refund–not a loan. Since it’s not a loan, the ERC doesn’t have to be repaid.
  • Eligible cannabis businesses could receive a refund of up to $5,000 per employee for 2020 Q2-Q4 and up to $7,000 per employee for 2021 Q1-Q2 (for a maximum total refund of up to $26,000 per employee).

ERC qualifications and limitations have been amended by Congress many times creating confusion for everyone.

We highly recommend that you work with an ERC specialist to make sure you qualify and to get the maximum amount possible.

We are not an ERC specialist firm, but are recommending a few trusted partners.

We want our clients and our industry to maximize their eligible refunds. We don’t make any money on the filing of the
refunds, though we can help an eligible cannabis company with a request for an advance on their tax refund.

Eligibility
A company is eligible if:

  1. It experienced a significant decline in gross revenue during a qualifying quarter in 2020 and 2021, OR
  2. Its operations were impacted due to COVID-19 government orders resulting in limitations of commerce, travel, or
    meetings.

For example:

  • Your business operations were interrupted.
  • There were interruptions in your supply chain.
  • There was an inability to access equipment.
  • Your business had a limited capacity to operate.
  • You were unable to work with your vendors.
  • Your hours of operation were reduced.
  • Your available services offered to customers were limited or reduced.

Contact us to accelerate government refunds and access the funds now.

To find out if your company qualifies for the ERC, or if you have already qualified and would like an advance based on your anticipated refund, we can help.

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Greenlight’s financing partner Suite420 Solutions can help. Contact the professionals at Suite420 Solutions now at info@suite420solutions.com.

You can also contact us with the form below.

About Greenlight Distribution
Greenlight Distribution provides best in class growing equipment at low prices for commercial cannabis cultivation. As a total growth partner, Greenlight sells more than 6,000 growing products, provides personalized consultation and design services, and delivers innovative financing solutions. As a direct lender to the industry, Greenlight provides debt capital to finance large purchases, manage cash flow, expand operations, and grow your cultivation business.