### Question
How does the law define recovery startup business?


### Answer
Under *26 U.S.C. § 3134*, **recovery startup business** is defined as:

> any employer—


(A) which began carrying on any trade or business after February 15, 2020, and


(B) for which the average annual gross receipts of such employer (as determined under rules similar to the rules under section 448(c)(3)) for the 3-taxable-year period ending with the taxable year which precedes the calendar quarter for which the credit is determined under subsection (a) does not exceed $1,000,000

#### Citation:
  - *26 U.S.C. § 3134*
  - Heading: **Subtitle C-Employment Taxes > CHAPTER 21-FEDERAL INSURANCE CONTRIBUTIONS ACT > Subchapter D-Credits**

