Texas Employee Retention Credit: State COVID Orders & Eligibility
Texas ERC eligibility guide covering Governor Abbott's COVID-19 executive orders and documentation for IRS audit defense.
Texas businesses experienced a unique COVID-19 regulatory environment under Governor Greg Abbott's executive orders. While Texas reopened earlier than many states, businesses still faced mandatory closures, capacity restrictions, and operational limitations from March 2020 through early 2021.
Texas COVID-19 Executive Orders Timeline
Governor Abbott declared a statewide disaster on March 13, 2020. Executive Order GA-08 (March 19, 2020) closed schools, gyms, bars, and dine-in restaurant service. Texas began phased reopening earlier than most states with GA-18 (Phase One) on May 1, 2020.
- GA-08 (March 19, 2020): Closed schools, gyms, bars, and restricted restaurants to takeout/delivery
- GA-28 (June 26, 2020): Re-closed bars and reduced restaurant capacity to 50% due to summer surge
- GA-29 (July 2, 2020): Statewide mask mandate in counties with 20+ COVID cases
Warning: Texas reopened earlier than many states, which may limit ERC eligibility for later quarters.
Industries Most Affected in Texas
Texas's diverse economy experienced varying COVID impacts across industries.
- Oil and Gas: Demand collapse, supply chain disruptions affected exploration, production, and services
- Hospitality and Bars: Bars faced the longest closure periods; restaurants experienced extended capacity restrictions
- Healthcare Providers: GA-09 banned elective procedures, severely impacting dental practices and surgery centers
Texas ERC Documentation
Defending a Texas ERC claim requires documenting the connection between specific executive orders and your business operations.
- Executive Order Copies: Maintain copies of all GA-series executive orders that applied to your business type
- Timeline Documentation: Clear records showing which restrictions were in effect during each week of claimed quarters
Tip: Texas bar owners should carefully document the extended closure period under GA-28.
Key Takeaways
- Texas COVID restrictions were primarily in effect March through June 2020, with renewed bar closures during summer 2020
- Governor Abbott ended most state restrictions in March 2021, earlier than most states
- Local Texas orders in major metros may provide additional documentation support
Frequently Asked Questions
Which Texas executive orders support ERC eligibility?
The primary orders are GA-08 (initial closures), GA-28 (summer 2020 bar closures), and GA-29 (mask mandate).
Can Texas bars claim ERC for the extended closure period?
Yes, Texas bars faced longer restrictions than most businesses. Executive Order GA-28 re-closed bars on June 26, 2020.
Does Texas's early reopening affect my ERC eligibility?
Yes, Texas reopened earlier than most states, which may limit ERC claims for later quarters.
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