Credits and Incentives
Is your company expanding into a new state or adding onto an existing facility? Is your business performing research & development? Are you hiring and training more employees? If so, there are multiple tax credits and incentives available for your company.
TaxMatrix’s credits and incentives practice can help your businesses reduce investment costs, and provide the guidance you need to leverage favorable incentives packages. Our team will also help you identify tax and non-tax savings opportunities for past investments, job creation, research, training and other qualified expenditures. Don’t miss out, let TaxMatrix help you identify your corporate or business tax credits and incentives today.
Credits and incentives are created to enhance economic growth by encouraging companies to make investments, create and retain jobs thereby promoting state commercial activity and strengthening the economy. We can also help you categorize tax and non-tax savings opportunities for past investments, job creation, research, training and other qualified expenditures.
Are you aware of all the tax credit and incentive options available? Here are some of the statutory and non-statutory incentives we can help you receive:
- Federal R&D Tax Credits
- State R&D
- Federal R&D Tax
- Empowerment Zones / Renewal Communities / Enterprise Zones
- Business Energy Investment Tax Credits
- Community-Based Service Credits
- Work Opportunity Tax Credits (WOTC)
- Call Centers / Data Centers
- Job Creation or Retention
- Temporary Facilities
- Utility Rate Concessions
- Employee Relocation Assistance
- Job Training Credits
- Film Production
Types of Tax Credits and Incentives Explained
Here are some of the largest areas of credits and incentives explained. There’s a good chance your company qualifies for some or all of them.
R&D Tax Credits and Incentives
R&D Tax Credits are types of business tax credits and incentives designed to stimulate research and development for any company, regardless of size, to encourage innovation. You don’t need to have a research laboratory in the basement full of men in white coats with test tubes to qualify. Virtually any research your company is doing, whether it’s to come up with a new toy or a new flavor of ice cream, may qualify for this type of tax credit at the state or federal level.
Employment Related Tax Credits and Incentives
These might be the most important business tax credits and incentives there are, as every business employs and usually pays workers. Types of corporate tax credits and incentives related to employment include:
- Work Opportunity Tax Credit, which reduces federal income tax liability for companies employing individuals who have barriers to employment
- Jobs Creation Tax Credit, which can provide a tax credit of anywhere from a few thousand to tens of thousands of dollars per job for creating new jobs, depending upon your state
- Jobs Training Tax Credits, which effectively reimburses you for providing new training to your employees
- Employee Relocation Tax Credits, which can provide incentives for easing the burden of an employee coming to work for you in your state
Location-Based Credits and Incentives
Another major source of business tax credits and incentives are location-based tax credits and incentives. Your state may have what are called empowerment zones or enterprise zones. These are areas in need of renovation that the government would like to revitalize by moving businesses into the area. By setting up part of your business interests in these areas, you can earn more corporate tax credits and incentives. You may have interests in one of these areas already and not even know it. TaxMatrix can help you find that out.
Why You Need TaxMatrix to Maximize Your Business Tax Credits and Incentives
Research indicates that companies only take advantage of 50 percent of credits and incentives allowed. TaxMatrix ensures that these lucrative prospects are discovered and capitalized on. Our experts classify companies that are entitled to these business incentives and support them through the intricacy of government programs. Our specialists bring years of experience in negotiating favorable credits and incentives in a vast array of industry segments to ensure maximum leverage of every viable prospect. These opportunities translate to significant tax savings, many resulting in substantial refunds or credits.
As an example, if your business is located within an Enterprise Zone, certain hiring, sales and use tax credits are available to your organization. The hiring credit provides a credit of over $37,000 for wages paid to certain employees. Sales and use tax credits are available for designated purchases such as manufacturing and processing machinery and office equipment, including computers, printers and faxes. Businesses often do not take advantage of these credits due to the complexity of laws governing Enterprise Zones and the excessive administrative burden documenting them, but we can help!
Don’t leave unrealized profits on the table. For more information on how we can assist you with a Credits and Incentives review, please contact us.