Did you know that there are over $200 million in tax credits available to California businesses each fiscal year?
Two of these employment-based tax credits are part of the governor’s Economic Development Initiative (GEDI) and are the CA New Employment Tax Credit (NEC) and the California Competes Tax Credit.
The general eligibility criteria for these tax credits and incentives under the GEDI include:
Although California repealed its poorly performing enterprise zone program, there are three programs in its place: the California Competes Tax Credit, a partial sales tax exemption for manufacturing equipment and the California New Employment Credit.
The CAEZ program is now largely considered to be ineffective for business attraction purposes, while also excluding many high-value companies in the state specifically because of their geographic location. California Competes was designed to fix these problems.
Tax incentives such as the R&D tax credit have the potential to significantly increase your company’s savings when you capture all qualified expenses. Tax experts may advise you on specific tax savings strategies when you are unsure of the documentation required, deadlines and which expenses qualify. If your business conducts research on a scientific model of experimentation, it is likely you are eligible to pursue savings through the R&D tax credit.
As you plan out your budget for expenses such as employee wages, research supplies and contract work, keep in mind that you may receive a reduction in tax liability for these costs. Learn more about how you are able to save on qualified research expenditures.
Helping your clients pursue tax strategies that maximize savings should be a priority for CPA firms seeking to increase client satisfaction and loyalty. Tax credits and deductions allow your clients to reduce tax liability when they conduct research, hire certain employees and make property investments.
Ensure your clients feel comfortable pursuing tax savings and get the most out of valuable tax incentives by following these four tips to help clients claim tax credits and deductions:
When your business partners with an outsourced tax expert, the capture of tax credits and savings should not be the only benefit you receive: Internal-use tax software is an instrumental tool for increasing transparency as you work on tax projects and on improving your firm’s productivity.
Your professional tax solution should transform your R&D credit process into a structured plan that takes advantage of technological advances to capture tax savings simply and more efficiently.
Both environmentalists and businesses have welcomed solar energy as an effective form of renewable energy. As a result, the federal government has put tax incentives in place to support the deployment of solar energy in the United States.
One of the most important mechanisms to grow solar energy resources is the solar Investment Tax Credit (ITC), also known as the Section 48 tax credit for commercial properties. This green tax incentive is beneficial for businesses working to improve their tax budgets.
When corporate tax incentive rules, requirements and deadlines become too difficult for your business to handle on its own, outsourcing tax inventive services to a tax expert is a beneficial solution.
Tax experts are knowledgeable about state and federal tax incentives that have the potential to improve your budget. Instead of letting tax problems pile up, discover five ways outsourcing tax credit and incentive services helps your business maximize tax savings.
Even the most veteran businesses sometimes have misconceptions about corporate tax incentives. Without receiving the correct information, however, you may miss the opportunity to earn valuable tax credits that benefit your budget.
If you believe your business is not qualified for tax credits and incentives such as the WOTC, green building incentives or research and development tax credits, it is still in your best interest to learn more about these credits in case you are mistaken.
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.
Many businesses today are focusing their efforts on enacting social or environmental change as part of the mentality that “giving back” is a responsibility. As an example, Starbucks is dedicated to reducing their environmental impact through a variety of efforts.
Not only does Starbucks promote recycling and purchase renewable energy credits, but they are working to bring all of their stores to LEED building standards. Starbucks believes that they can have a positive impact on the communities they serve.
