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.
As we debunk the following five corporate tax incentive myths and misconceptions, you may discover your business qualifies to save on taxes and increase savings.1. My Business Doesn’t Hire Employees Who Qualify For Employment Incentives Like The WOTC
Many companies have such specific ideas about who they hire that they miss important details in interviews about potential employees’ backgrounds. While it’s true that most employees who qualify for employment incentives such as the WOTC work in industries that require fewer skills, you won’t know an individual’s story unless you ask.
In order to gauge whether your new employees qualify for employment incentives, it is beneficial to create a survey or questionnaire for new hires. Incorporating these questions in the hiring process also helps your business hire individuals who are eligible for WOTC savings.
2. Energy Standards Are Too Strict For My Business To Qualify For Green Building Incentives
Due to the stringency of green building incentives such as the 45L tax credit, many contractors believe their buildings do not qualify. This tax incentive requires residences to exceed the 2006 Edition of the International Energy Conservation Code (IECC) heating and cooling budgets by 50%.
However, local and state regulations for energy efficiency often put your business at an advantage, especially if your company is located in California. Energy laws in California are so strict that many contractors easily qualify for green building incentives such as the 45L tax credit.
3. Only Lab Supplies Qualify As Expenditures For Research And Development Tax Credits
Because the word research brings to mind an image of doctors in white coats, many people believe only pharmaceutical companies that invest in beakers and lab equipment qualify to pursue research and development tax credits as a tax solution for their businesses.
On the contrary, employing engineers and researchers who conduct product research using the process of elimination to reach a conclusion qualifies your business for R&D tax incentives. Eligible expenses may include researchers’ time spent on projects or something as unexpected as a cell phone that’s used to test mobile games and applications.
Instead of making costly assumptions that your business is not eligible to claim corporate tax incentives such as the WOTC, green building incentives or research and development tax credits, take the time to conduct further research and find out for certain whether or not you qualify to increase your tax savings.
If you are unsure of where to begin, a tax expert knowledgeable in the field is a valuable resource. Consulting an advisor is the simplest and most effective method of discovering what tax credits your company is eligible to receive.
Ready to learn more about corporate tax incentives your business may already be qualified to claim? Call 866-444-4880 or click here to contact a tax expert at Corporate Tax Incentives.
