The final opportunity for small and medium-sized businesses to claim the Employee Retention Tax Credit (ERTC) is fast approaching, with the deadline set for April 15, 2025. According to the Economic Recovery Center, more than half of eligible businesses have yet to file for the COVID-era tax refund, leaving potentially billions of dollars unclaimed.

The ERTC was introduced at the onset of the COVID-19 pandemic by the Trump administration to provide financial relief to businesses impacted by the crisis. Over the following years, the program underwent numerous modifications under the Biden administration, leading to confusion among the nation’s estimated 33 million small and medium-sized businesses.

According to the Economic Recovery Center, the ERTC differs significantly from other pandemic relief efforts such as the Paycheck Protection Program (PPP) and COVID-EIDL loans. While the PPP and EIDL initiatives were loan-based programs that required minimal vetting, the ERTC is a refund based on previously filed payroll taxes.

The organization emphasized that the ERTC is not a loan but a temporary tax law adjustment that entitles eligible businesses to a refund of overpaid taxes. Businesses that meet the qualifications may be eligible for substantial refunds, in some cases up to $20,000 per employee.

“There are no costs to determine if you qualify,” says Chase Henderson, President of Economic Recovery Center. Henderson added, “The qualifications are complex and have consistently changed since its launch. Regardless, we believe all U.S.-based businesses should, at a minimum, obtain a no-cost qualification analysis. After all, we are talking about a refund of their taxes, not pulling in tax dollars from others; it is literally their money that was overpaid.”

Eligibility for the program is not limited to currently operating businesses. Even companies that have since shut down may qualify if they were operational in 2020 or 2021. Two primary criteria determine eligibility:

A decline in revenue in 2020 or 2021 compared to 2019.
Operational disruptions due to COVID-19, such as implementing social distancing measures or capacity restrictions.

The Economic Recovery Center warns that once the April 15 deadline passes, any unclaimed ERTC funds will be redirected to other federal programs. They are urging all business owners to seek a qualification review before the program closes permanently.

The ERTC remains one of the final avenues for pandemic-era tax relief available to American businesses. With only weeks left to apply, the Economic Recovery Center is encouraging immediate action to avoid missing out on what it describes as rightful tax refunds owed to businesses across the country.

This article, “Final IRS Deadline Nears for ERTC Program, Millions in Refunds Remain Unclaimed” was first published on Small Business Trends