ERTC Memorandum 2024

Dear Leaders and Business Managers, 

In response to continued inquiries we had received from the field, the League recently worked with others to pursue an additional legal opinion on the question of the federal Employee Retention Tax Credit (ERTC) program and whether Colorado charter schools might be eligible to participate.

In our ongoing effort to ensure that we’re being as thorough and objective as possible in the information we provide to our members, we wanted to share that with you today. It was completed by the law firm Brownstein Hyatt Farber Schreck, LLP (firm website), and can be seen below. 

It does reach different conclusions than previous legal opinions the League has sought on this topic, but schools are still highly encouraged to consult with their attorneys before taking potential action related to this program. Additionally, please note that the ERTC program is currently on hold (IRS press release) at the federal level and that the House of Representatives recently passed the Tax Relief for American Families and Workers Act of 2024. This legislation has not passed the Senate, but if it does in its current form, claims for the ERTC made after January 31, 2024, would not be permitted.

Brownstein Opinion.