Three Essential Tax Credits Every Hotel and Restaurant Should Take During an Unpredictable Economy
Right now, confusion around tax credits is at an all-time high
According to recent data, there are over 15 million people working in the hospitality and leisure industry in the U.S. alone. And with COVID-19 continuing to impact labor shortages and a potential recession on the horizon, the hospitality industry will continue to be affected. The good news is that there are a few key tax credit programs that have been put into place to help offset these circumstances and for many businesses, taking advantage of them has helped to keep them afloat in turbulent times.
However, confusion around tax credits is at an all time high, which is evidenced by a recent survey of more than 500 business decision-makers. Nearly half reported they didn’t know if their company qualified as the reason for not participating in federal or state tax incentive programs. Whatever the reasoning, the results indicate substantial missed opportunities, as some of these tax credits for qualifying companies reached up to $33,000 per employee in 2020 and 2021.
So, which tax credits are hotels and restaurants entitled to receive and how can they quickly determine what they might be owed? Here we take a closer look.
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