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.
The Protecting Americans from Tax Hikes Act, known as the PATH Act, protects taxpayers against fraud. Some components of the act have expired, but there are still many active components that could benefit your business.
Companies of all industries and sizes can be eligible for the federal R&D credit. As such, the credit is not limited to specific industries or company size. Any company that designs, develops, or improves products, processes, techniques, formulas, inventions, or software may be eligible.
Many businesses within the hospitality industry were negatively impacted by the string of devasting hurricanes that hit the United States and the Caribbean during the late summer and early fall of 2017. Many hotels and resorts, among other businesses, were left inoperable due to the damages their facilities sustained during Hurricanes Harvey, Irma and Maria and many of those hotels and resorts continued to pay their employees not only on the day the hurricane hit, but during their recovery efforts and while the business was left inoperable. For these businesses, the Hurricane Disaster Relief credit can bring economic relief.
Some people choose to implement energy efficiency changes into their homes and buildings solely out of concern for the environment. However, there are many cost-saving benefits that when outfitting a green building.
Myths surrounding the R&D tax credit are the reason why so many companies fail to understand the eligibility requirements. The fact is that the IRS and our government want to encourage as much research and development as possible, but the R&D regulations are constantly changing.