Safe & Green Holdings Eligible for $1.5 Million Employee Retention Tax Credit

Rhea-AI Summary

Safe & Green Holdings Corp. (NASDAQ: SGBX) is eligible for a $1.5 million refund from the IRS for the Employee Retention Tax Credit, as confirmed by the Company's Professional Employer Organization (PEO). This refundable credit is expected to reduce the need for dilutive capital, and the timing of the receipt is reliant on the processing times of the IRS and the Company’s PEO. The company's CEO, Paul Galvin, emphasized the significance of this tax credit, highlighting the company's focus on retaining and increasing its workforce during the pandemic. The CFO, Tricia Kaelin, expressed commitment to providing high-quality US jobs and leveraging the ERTC to foster growth and employment in communities.

Positive

• Safe & Green Holdings Corp. is eligible for a $1.5 million refund from the IRS for the Employee Retention Tax Credit, which is expected to reduce the need for dilutive capital.
• The company's focus on retaining and increasing its workforce during the pandemic demonstrates resilience and commitment to fostering employment opportunities.
• The CFO's commitment to providing high-quality US jobs and leveraging the ERTC to foster growth and employment in communities reflects a long-term strategic vision.

Negative

• None.

MIAMI--(BUSINESS WIRE)-- Safe & Green Holdings Corp. (NASDAQ: SGBX) (“Safe & Green Holdings” or the “Company”), a leading developer, designer, and fabricator of modular structures for residential, commercial, and point-of-care medicine, reported that the Company has received confirmation from its Professional Employer Organization (PEO) that the Company is eligible for a $1.5 million refund from the IRS for the Employee Retention Tax Credit, which is a refundable credit. The timing of the receipt of the refund is unknown and is reliant upon the processing times of the IRS and the Company’s PEO.

“This $1.5 million tax credit is material to our business and will further reduce our need for dilutive capital,” stated Paul Galvin, Chairperson and CEO of Safe & Green Holdings. “During the pandemic, we did not focus on PPE loans or other grant programs for assistance. Instead, we designed, built, and deployed a licensed COVID-testing lab at Los Angeles International Airport. Not only were we able to retain our employees but, in fact, substantially increased our headcount during the pandemic. These jobs were created and retained on factory floors, and across the Safe & Green platform.”

“Our employees are the backbone of our business, and as a result of their hard work, we not only survived, but have continued to thrive, as illustrated by our strong manufacturing & construction services revenue growth,” commented Tricia Kaelin, Chief Financial Officer at Safe & Green Holdings. “We are committed to providing high quality US jobs and this ERTC will help us continue to grow and spur employment in our communities."

About Safe & Green Holdings Corp.

Safe & Green Holdings Corp., a leading modular solutions company, operates under core capabilities which include the development, design, and fabrication of modular structures, meeting the demand for safe and green solutions across various industries. The firm supports third-party and in-house developers, architects, builders, and owners in achieving faster execution, greener construction, and buildings of higher value. The Company’s subsidiary, Safe and Green Development Corporation, is a leading real estate development company. Formed in 2021, it focuses on the development of sites using purpose-built, prefabricated modules built from both wood and steel, sourced from one of SG Holdings’ factories and operated by the SG Echo subsidiary. For more information, visit https://www.safeandgreenholdings.com/ and follow us at @SGHcorp on Twitter.

Safe Harbor Statement

Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. These forward-looking statements are based upon current estimates and assumptions and include statements regarding the tax credit reducing the need for dilutive capital and the ERTC helping the Company to continue to grow and spur employment in its communities.. These forward-looking statements are subject to various risks and uncertainties, many of which are difficult to predict that could cause actual results to differ materially from current expectations and assumptions from those set forth or implied by any forward-looking statements. Important factors that could cause actual results to differ materially from current expectations include, among others, the Company’s receipt of the ERTC in a timely manner, the Company’s ability to continue to grow and spur employment in its communities, the Company’s ability to realize anticipated synergies, the effect of government regulation, the Company’s ability to maintain compliance with the NASDAQ listing requirements, and the other factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 and its subsequent filings with the SEC, including subsequent periodic reports on Forms 10-Q and 8-K. The information in this release is provided only as of the date of this release, and we undertake no obligation to update any forward-looking statements contained in this release on account of new information, future events, or otherwise, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231120557438/en/

Investor Relations:

Crescendo Communications, LLC

(212) 671-1020

sgbx@crescendo-ir.com

Source: Safe & Green Holdings Corp.

FAQ

What is Safe & Green Holdings Corp. (NASDAQ: SGBX) eligible for?

The company is eligible for a $1.5 million refund from the IRS for the Employee Retention Tax Credit.

How did Safe & Green Holdings Corp. respond to the pandemic in terms of financial assistance?

Instead of focusing on PPE loans or other grant programs, the company designed, built, and deployed a licensed COVID-testing lab at Los Angeles International Airport and increased its headcount during the pandemic.

What is the commitment of Safe & Green Holdings Corp. to its employees and communities?

The company is committed to providing high-quality US jobs and leveraging the ERTC to foster growth and employment in communities.