TAX INCENTIVES & CREDITS
I hope All is Good with you {first_name}!
We left off getting locations added to try our Tax Management System a few months back so I'm checking in to see where we are. Following is a refresher.
It's Not Just ERC
There are hundreds of tax credits and incentives available to small businesses, though many business owners are unaware of them.
Let's take a look at the top five.
Tax credits and incentives aren’t crazy loopholes that no one else knows about that we discover and exploit. They are intentional acts of Congress, and they are meant to help businesses.
As businesses look at how they can reduce costs, how they can supplement cost to achieve strategic growth, to build head count, to hire, to train, [and] to expand their footprint, tax credits, and incentives at the federal, state, and local levels can provide economic support to do that.
Whether through an income tax credit, a payroll tax credit, like the very popular employee retention credit, or property tax abatements, all of these tax incentives are provided to encourage business growth and development.
Recently most news about tax credits and incentives has focused on the Employee Retention Tax Credit, but there are literally hundreds of federal, state, and local credits and incentives available to you. Our tax management system allows you to locate and claim all available funds owed to you. Check your credit and incentive balance today.
1
R&D Tax Credit
The research and development (R&D) tax credit is a credit on your income tax return, not a deduction. That means, dollar for dollar, you can reduce your tax liability, in addition to deducting any eligible R&D expenses.
Businesses can save thousands of dollars for activities they are already conducting. Such as; design, development, improvement of products, processes, formulas, or software and much more!
Many companies aren't fully benefiting from the R&D credit because of common misconceptions about its applicability to their operations.
Cost Segregation is a lucrative Tax Strategy that should be used in almost every purchase of commercial real estate.
2
Cost Segregation
Cost Segregation is a strategic tax savings tool that allows companies and individuals who have constructed, purchased, expanded, or remodeled real estate to increase their cash flow by accelerating depreciation deductions and deferring their federal and state income taxes.
An average Cost Segregation Study offers approximately $150,000 in additional depreciation per $1 million in purchase or construction cost.
3
Work Opportunity Tax Credit (WOTC)
The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers who invest in American job seekers who have consistently faced barriers to employment. Employers may meet their business needs and claim a tax credit if they hire an individual who is in a WOTC targeted group.
The average per employee benefit is $2,400 and can be as much at $9,600.
The Work Opportunity Tax Credit program reduces the employer's cost of doing business and requires little paperwork.
The ERC can provide thousands, or tens of thousands, of much-needed dollars to your business. Would you rather make a decision to forego this cash based on bad information than do your own due diligence and see for yourself?
4
Employee Retention Tax Credit (ERC)
The Employee Retention Credit (ERC) is a refundable tax credit for businesses that continued to pay employees while shut down due to the COVID-19 pandemic or had significant declines in gross receipts from March 13, 2020 to Sept. 30, 2021.
Employers can get up to $5,000 per eligible employee for 2020 and up to $21,000 per eligible employee for 2021.
An average ERC claim for an employer with 50 employees is $325K+.
5
Property Tax Mitigation
Outside of income taxes, the single largest recurring charge for commercial property owners are Property Taxes. In most states, owners are required to pay taxes on both their real estate as well as their personal property. These charges are often an immense expense and a constant hit to their bottom line. To be ensured clients are not being overcharged on Property Taxes, we use an industry specialist with extensive market experience in valuation, tax and law to perform their Property Tax Mitigation.
A property tax review can result in savings up to 10-25% or more of the total real and personal property taxes paid.
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