The Research and Development (R&D) incentive provides an Arizona income tax credit for increased research and development activities conducted in the state, including research conducted at a state university and funded by the company. The goal is to encourage businesses to continue investing in research and development activities in the state of Arizona.
With the cost of doing business consistently on the rise and as it becomes more difficult to find/retain great employees, companies are turning to staffing agencies to assist them with their employment needs. This is great for staffing agencies and there is no better time to pursue employment-based tax credits than now. There are both federal and state employment-based credits available that can help businesses offset income tax liability. Some of these programs are based on the creation of net new jobs while others are offered to employers for employing individuals from specific target groups. The most popular of these programs is the Federal Work Opportunity Tax Credit (WOTC).
Construction companies may be able to take advantage of the credit for increasing research activities (“R&D tax credits”) under Internal Revenue Code §41, if they know what activities and expenses are eligible for the credit. The two key questions taxpayers should be asking themselves are 1) what activities at my company are eligible for the R&D credit and 2) are the R&D expenditures related to those activities properly identified and captured.
Cannabis businesses involved in research and development activities and related expenses may be eligible for valuable R&D tax credits. Over the past several years, some states including California, have introduced and passed legislation making it legal to grow, manufacture, and use both medicinal and recreational cannabis (also known as marijuana). Frequently, the cultivation of the cannabis plant and the subsequent development of new and different marijuana products involve much research and experimentation. These businesses and their tax professionals need to know how the new legislation coupled with the current state R&D tax credit rules can provide significant savings on the taxpayer’s income tax returns.
Does your manufacturing company develop a new or improved product or process? If so, you are likely eligible for a valuable corporate tax credit!
Since 1981, companies of all sizes have been able to enjoy the benefits of the R&D credit, with companies in the manufacturing industry accounting for over 60% of the annual credits claimed by taxpayers. Sounds like great news, but the fact is only 1 in 20 manufacturers claim the R&D credit. Many small and medium-sized manufacturing companies are eligible for the R&D credit, but they frequently and erroneously believe that only companies developing or manufacturing products new to the world are eligible for the credit and therefore miss out an opportunity to substantially save their company money each year.
Today President Trump signed into legislation H.R. 1892 which ended the government shutdown earlier this morning. Included in the legislation are a number of tax extenders and new tax provisions – more notably the extension of the Federal Empowerment Zone Employment Credit and the Federal Indian Employment Credit and the introduction of the Employee Retention Credit for Employers Affected by California Wildfires.
Manufacturing and distribution companies are being challenged today, both domestically and globally, by growth in the industry and competition. Companies are scrambling to deliver quality products and service to meet customer needs and demands. Faced with rising operating costs and increasing minimum wage rates, it can be difficult for manufacturers to stay profitable without comprising the quality of their products or compromising employee retention and morale. Fortunately, there are tax incentives programs offered on the federal and state level that include targeted employment incentives (like the Federal Work Opportunity Tax Credit), state employment-based incentives and training-based incentives that can be advantageous to manufacturers.
A new credit has been introduced to an already sizable list of credits offered by the State of GA. The Georgia Qualified Parolee Jobs Tax Credit, effective January 1, 2017 – December 31, 2019, is an income tax credit available to employers who hire individuals who have recently been granted parole.
Hotels are faced with rising operating costs including increased taxes, escalating minimum wage rates and high employee turnover. It can be difficult for hotels to stay profitable without compromising guest satisfaction. Taking advantage of various tax savings programs including targeted employment incentives (like the Federal Work Opportunity Tax Credit), state employment based incentives and training based incentives may help boost your hotel’s bottom line by offsetting the costs of some of the most prevalent offenders such as increased taxes, escalating minimum wage rates and high employee turnover.
Federal and state employment and job creation incentives are developed to address overarching issues of our country’s economic development. Employment tax credit programs are each unique regarding its specific goals and objectives but increasing business growth is a common focus e.g. (job creation and capital investment) and/or emphasis on employing individuals with certain barriers to employment.