Capturing state-level tax credits and incentives is a beneficial way for your business to reduce taxes and save your budget for other expenses. By taking advantage of employment incentives, green building incentives, research and development tax credits and other business tax credits, your business is in a position to maximize tax savings.
While cost savings certainly make taking advantage of tax incentives an attractive option for business owners, the start-to-finish process of submitting for tax credits must be followed thoroughly in order to successfully capture credits.
It’s also important, however, not to let the complexities of tax laws interfere with your process of submission. Every state in the United States offers state tax incentives worth millions of dollars. Follow these three steps to successfully capture your tax credits.
1. Research tax incentives for which you believe your company may qualify.
Your business is not in a position to calculate research tax credits if you don’t understand their requirements. Waiting until the last minute to research tax incentives is not a feasible option because many incentives require complete documentation to successfully capture credits.
Instead of delaying, begin your state-level tax credit research as soon as possible. For example, the California New Employment Tax Credit is an attractive option that many people are unfamiliar with for businesses in California.
This employment incentive offers thousands of dollars of tax credits to eligible companies that create new employment positions. Qualified businesses must operate within a Designated Geographic Area (DGA) and have a net increase of full-time employees working in California.
The number of other state-level tax credits and incentives your business doesn’t know about is reason enough to conduct research about which credits your company may qualify for and how to properly submit for these incentives.
2. Put a system in place to properly document criteria for business tax credits.
Without proper documentation, your business is not eligible to submit for tax credits that you would otherwise capture if you had the correct paperwork. Employment incentives, for example, often have strict deadlines after the point-of-hire to submit employee information and signatures.
Additionally, federal research and development tax credits require engineers and employees whose research time qualifies as an expenditure to document their time spent working on certain projects. Make sure you are familiar with your state’s tax rules surrounding R&D expenditure documentation.
3. Speak with a tax expert about the finer details and your remaining questions.
The process of submitting for tax credits and incentives is made simpler and more effective by consulting a tax expert. Instead of trying to remember every deadline and every tax incentive detail, allow your advisor to handle the most difficult aspects of the submission process.
Your tax expert is knowledgeable in all areas of a tax incentive’s requirements, deadlines and methods for applying. If you wish to submit for state-level incentives, all you need to provide your tax expert with is your property location and some basic information. Your advisor will figure out what business tax credits you qualify for.
If saving on taxes benefits your business, don’t delay in preparing to submit for business tax credits. Following these three steps ensures you are educated about tax opportunities available to you, prepared to file the correct documentation and equipped with expert advice when it comes time to submit.
While some businesses choose to handle their tax incentive submissions themselves, you achieve more success in receiving credits with the help of a tax expert. When you have a tax question that impacts your business, your tax expert is ready to assist you.
Ready to learn more about the process of submitting for state-level tax credits and incentives? Call 866-444-4880 or click here to contact a tax expert at Corporate Tax Incentives. 
