Tax Incentives Blog

4 Questions To Ask New Hires To Secure Employment Tax Credits

Written by Stephanie Cornejo Banuelos. Updated Jul 11, 2018.

One of the most valuable tax credit programs overlooked by businesses is employment-based tax credits. Many companies believe they would not benefit from this tax savings strategy due to the background of employees they hire or the complexity of employment incentive programs.

However, both state and federal employment credits give businesses the opportunity to improve their tax budget and increase their bottom line. While some companies consider administering programs such as the Federal Work Opportunity Tax Credit (WOTC) on their own, a third-party tax consultant often elicits more honest responses from new employees.

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Does Your Architecture & Engineering (A&E) Firm Qualify for the R&D Tax Credit?

Written by Mark Echols. Updated Jun 25, 2018.

The architecture and engineering (“A&E”) industry is the lifeblood of innovative design and construction projects in today’s competitive global environment. A&E firms develop a nation-wide infrastructure and these new projects may qualify for valuable federal and state R&D tax credits.  According to the latest U.S. Census Bureau, there are more than 80,000 A&E companies in the U.S. and a clear majority of these firms are not even aware that they are doing research and experimentation activities eligible for the credit.

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Arizona's Enhanced R&D Program May Bring You More Savings

Written by Mark Echols. Updated Jun 18, 2018.

The Research and Development (R&D) incentive provides an Arizona income tax credit for increased research and development activities conducted in the state, including research conducted at a state university and funded by the company. The goal is to encourage businesses to continue investing in research and development activities in the state of Arizona.

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4 Reasons Why Employment-Based Tax Credits Are A Win for Your Staffing Company

Written by Stephanie Cornejo Banuelos. Updated Jun 13, 2018.

With the cost of doing business consistently on the rise and as it becomes more difficult to find/retain great employees, companies are turning to staffing agencies to assist them with their employment needs.  This is great for staffing agencies and there is no better time to pursue employment-based tax credits than now.  There are both federal and state employment-based credits available that can help businesses offset income tax liability.  Some of these programs are based on the creation of net new jobs while others are offered to employers for employing individuals from specific target groups.  The most popular of these programs is the Federal Work Opportunity Tax Credit (WOTC).

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Learn How Current Activities Can Earn Tax Credits For Your Construction Firm

Written by Mark Echols. Updated Jun 6, 2018.

Construction companies may be able to take advantage of the credit for increasing research activities (“R&D tax credits”) under Internal Revenue Code §41, if they know what activities and expenses are eligible for the credit.  The two key questions taxpayers should be asking themselves are 1) what activities at my company are eligible for the R&D credit and 2) are the R&D expenditures related to those activities properly identified and captured. 

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Learn How To Grow Tax Credits Today for Cannabis Businesses in California

Written by Mark Echols. Updated May 7, 2018.

Cannabis businesses involved in research and development activities and related expenses may be eligible for valuable R&D tax credits. Over the past several years, some states including California, have introduced and passed legislation making it legal to grow, manufacture, and use both medicinal and recreational cannabis (also known as marijuana).   Frequently, the cultivation of the cannabis plant and the subsequent development of new and different marijuana products involve much research and experimentation.    These businesses and their tax professionals need to know how the new legislation coupled with the current state R&D tax credit rules can provide significant savings on the taxpayer’s income tax returns.

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Why Manufacturing Companies Are Missing Out On Valuable R&D Credits

Written by Mark Echols. Updated Apr 4, 2018.

Does your manufacturing company develop a new or improved product or process?  If so, you are likely eligible for a valuable corporate tax credit! 

Since 1981, companies of all sizes have been able to enjoy the benefits of the R&D credit, with companies in the manufacturing industry accounting for over 60% of the annual credits claimed by taxpayers.  Sounds like great news, but the fact is only 1 in 20 manufacturers claim the R&D credit.  Many small and medium-sized manufacturing companies are eligible for the R&D credit, but they frequently and erroneously believe that only companies developing or manufacturing products new to the world are eligible for the credit and therefore miss out an opportunity to substantially save their company money each year. 

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Passing of H.R. 1892

Written by Rose Davidson. Updated Feb 9, 2018.

ThinkstockPhotos-161827239.jpgToday 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.

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Tax Savings Programs for Manufacturers

Written by Rose Davidson. Updated Feb 6, 2018.

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.

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New Georgia Job Tax Credit: Qualified Parolee

Written by Rose Davidson. Updated Dec 1, 2017.

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.

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