According to the IRS, a recovery startup business is a company that started during the coronavirus pandemic (on or after February 15, 2020), and has an annual income of less than $1 million. Recovery startup businesses can receive payroll tax refunds of up to $100,000 as part of the Employee Retention Credit (ERC). This tax credit for startups was added to the ERC in 2021 as part of the American Rescue Plan Act in order to help new companies keep their doors open and stimulate the economy.