Tax Incentives Blog

What's the trend entering 2024? 

For many, it will be the continuation of technological innovations and upgrades to grow their respective industries. However, which industries are benefiting? On the whole, senior living operators are continuing to spend on technology and plan to further do so this year. The large majority of respondents to this survey plan to increase their tech budgets significantly in 2024.

While investing time and money into the increase in technology, the introduction of the Research & Development (R&D) tax credit may become essential to companies developing and creating new or updated technology for senior living operators.

The whole intent of Section 179D is to provide an incentive in the form of a tax deduction to building owners who install energy-efficient lighting, windows & doors, roofing, insulation, and Heating, Ventilation, and Air Conditioning/Hot Water (HVAC/HW) equipment in new buildings or retrofit projects. All buildings in the US are eligible for the 179D deduction, except housing units less than 4 stories above ground. The Inflation Reduction Act of 2022 (IRA) affected section 179D in several ways, and the next three years will present a golden opportunity for the owners and designers of energy-efficient commercial building property (EECBP).

Since its creation in the Energy Policy Act of 2005, the Section 179D Energy Efficient Commercial Building deduction has provided an incentive for taxpayers to install energy-efficient commercial building property (EECBP) as part of the building envelope, lighting, and/or Heating, Ventilation and Air Conditioning/Hot Water (HVAC/HW) systems. EECBP comprises light fixtures, switches, HVAC equipment, automated controls, ducts, water heating, windows, doors, insulation, and roofing. EECBP may be installed in a new building, or it may be part of a retrofit project for an existing building. Buildings that qualify for 179D include almost all buildings in the United States except residential housing less than four stories above ground. That’s a lot of eligible buildings!

The Tax Cuts and Jobs Act (TCJA) creates the need to amortize research and experimental expenditures in tax years after December 31, 2021. This article provides an overview of section 174, then dives into the changes, updates, and questions regarding taxpayers and their involvement with Section 174 of the TCJA as of the 2022 tax year.

Signed into law by President Biden in August of 2022, the Inflation Reduction Act (IRA) is intended to lower inflation by investing in various areas that will facilitate growth, promote jobs, and strengthen the American economy. 

It has been a tough few years.
Between an unprecedented and painful economic contraction due to the COVID-19 pandemic and the subsequent supply-side shocks and inflationary pressures, businesses are eager to find ways to save money and improve their bottom line by any means, while also seeking to innovate to better perform in an ever-increasingly competitive environment. For many businesses, this includes renewed exploration of local, state, and federal incentives to help reduce tax liabilities. For a large number of industries, research and development (R&D) tax credits may provide an effective tool in recouping crucially needed cash spent on developing new or improved products or processes. Better still, many companies can take advantage of both federal and state R&D programs concurrently to enjoy even greater benefits.

The Employee Retention Credit (ERC) has been a popular topic of conversation throughout the pandemic, yet many organizations believe they don’t qualify, and even more have yet to claim it. There is a good chance you have been inundated with emails, text messages, and phone calls indicating your business or organization qualifies for cash from the federal government. Whether you’ve been too busy to focus on it or had no idea your business was eligible in the first place, we would like to help you understand what all the fuss is about. In doing so, you may consider taking a closer look at how the ERC may apply to your situation.

Over the past year and a half, the state of Kansas has passed legislation to improve their incentive offerings for new and expanding businesses. The most notable parts of this legislation are the inclusion of remote workforce in incentive program projects, an increase from 6.5% to 10% in the state Research & Development (R&D) credit amount, the removal of training program participation for High Performance Incentive Program (HPIP) participants, and the introduction of a significant benefits package through the Attracting Powerful Economic Expansion (APEX) program.

On August 16th, President Biden signed the Inflation Reduction Act (IRA) into law, and although there were many provisions, there are a few that stand out for business owners. One of which being that there are additional funds for the Internal Revenue Service (IRS). We will explain what this means to taxpayers, specifically ones claiming business tax credits and what they can do to protect themselves from IRS examinations.

At the end of June 2022 the new Circular Bio-based Europe Joint Undertaking (CBE-JU) announced a €2 billion partnership between the European Union and the Bio-based Industries Consortium (BIC), funding projects with cash grants which advance the competitive circular bio-based industries in Europe.