Have You Had Your Tax Incentives Checkup?
The Business Incentives Advisory team helps clients with their tax incentive challenges, providing guidance and education as they navigate what tax incentive programs for which their company may be eligible. Let's take a look at a few best practices.
- Educate your organization on the benefits of capturing incentives. Everyone needs to understand the type of programs available and how to identify them. Share a one-page document of “Triggering Events” to give them a better understanding of incentives.
- Be sure you have executive level support and buy-in. Capturing incentives will take cooperation from individuals throughout your organization. If everyone knows it’s important to your executive management then it will be important to everyone else. This includes providing the resources necessary to secure the benefits and holding people accountable for their involvement and responsibilities.
- Establish goals and objectives for your incentives program. Like any other area of focus in your organization, you should identify goals and objectives of your program and regularly report and track performance. If you don’t know where your program is going then how do you know if you got there?
- Include representatives from the proper departments. You have to have the right people at the table. Many of these incentive programs require you to be proactive in identifying changes in your organization. Therefore you need a representative from your training department to anticipate upcoming training or your real estate department to inform you of new office openings.
- Manage all incentive activity in a central location/effort. The overall coordination is drastically improved with centralized reporting and the benefits often interact with each other or can affect the organization indirectly. For example, if a program provides a state level but the company already participates in another program that provides similar benefits then it may not make sense to participate in both programs if the organization doesn’t have sufficient tax liability in that state.
- Conduct an annual review to confirm all programs have been identified and maximized. Are you participating in all the available programs? Are you maximizing the benefits in the programs you are participating? Are there internal changes you can make to decrease the amount of internal resources involved? No different than when you go into the doctor for your annual checkup. You should take a closer look at your efforts on an annual basis at a minimum.