Operations are fully or partially suspended during a calendar quarter due to “orders from an appropriate governmental authority limiting commerce, travel, or group meetings (for commercial, social, religious, or other purposes)” due to COVID-19. For details about scenarios that qualify, please see the IRS page.
Gross Receipts Test
2020: Starts with a 50% decline in receipts from the same quarter in 2019 to 2020. Continues as long as you remain in a 20% decline, plus one more quarter
2021: Must have a 20% decline compared to 2019 or if you didn’t pass this test, you can still pass if the preceding quarter had a 20% reduction.
Example of how powerful the ERC can be: