Recovery startup businesses are defined in the American Rescue Plan Act. It refers to any business that opened its doors during the pandemic and meets the following conditions:nnThe business opened on or after February 15, 2020.nThe business’s gross receipts don’t exceed $1 million for the individual tax years of 2020 and 2021.nThe business has 1 or more W2 employees, not including owner-operators or family members.nnIf a business began during Q2 of 2021, it could not claim the credit for any portion of 2020 or the first two quarters of 2021. If you acquired an existing company on or after February 15, 2021, you may or may not qualify for the ERC, depending on several factors.