Posts Tagged ‘tax credit’

How Will A Tax Credits and Incentives Plan Benefit Your Business?

Tuesday, July 19th, 2016
Tax Credits & Incentives Plan | Ohio CPA Firm

Right now, there is an estimated 3,000 federal, state and local credits and incentives valued at more than $50 billion available to your business. Find out what you can do to capture a piece of the billion-dollar-pie.

If you had a chance to claim thousands of dollars, would you? Well, if you are a business owner, the opportunity is staring you right in the face. But you have to seize the opportunity sooner rather than later.

Right now, there are around 3,000 federal, state and local credits and incentives valued at more than $50 billion available to your business. These opportunities are both statutory and negotiated and include hiring credits, investment credits, real and personal property incentives, utility rate reductions and infrastructure grants – just to name a few. Unfortunately, only a relatively small number of companies are taking advantage of these opportunities. 

Read Also: The Do’s And Don’ts Of Summertime Tax Prep

So why aren’t businesses seizing these opportunities for cash flow enhancement and return on investment? Sometimes companies don’t know they exist, or they think that they are too complex to understand and the opportunities are not worth the effort. Wrong!

If you take the time to develop a credits and incentives plan, your company can capture a piece of the $50 billion pie. Here’s how!

Key Elements of a Tax Credits and Incentives Plan

  1. Outline your key opportunity indicators. Key opportunity indicators are events that your team should come to know and understand that trigger the potential for credits and incentives. They typically revolve around your people and your investment in fixed assets. On the people side, opportunity indicators often involve increases or decreases in employment, turnover, relocations and employee training or retraining. On the fixed asset side, opportunity indicators include site selection and start-up, capital investment, leases and renewals, building acquisitions, facility upgrades and so on. Make a list of these indicators and train your team to spot them. Once an opportunity is spotted, investigate further and contact your CPA to see if it might benefit your business.
  2. Understand that timing is everything. To give your business the best chance of securing a credit or incentive, you must understand that timing is everything. To secure many credits and incentives, the process of securing the opportunity happens well in advance of hiring, training or purchasing fixed assets. In many instances, if your business has hired the employee, spent money on the training or purchased the fixed asset — it is too late. Once you’ve spent the money or announced your plans to the public, you’ve lost most if not all of your ability to negotiate. Understanding this and putting a plan in place to uncover the opportunity well in advance of the investment will put you in a position for maximum success. And outlining your key opportunity indicators is the first step to realizing the potential credits and incentives available to you.
  3. Get your entire team on board. Securing maximum credit and incentive opportunities isn’t just the job of your owner, CFO or CPA. It should also be the job of your HR department, training coordinator and safety director. The more your entire team is able to understand the key opportunity indicators and that timing is everything, the greater chance of success you will have.

Tax Credit Help

If you’re looking to capitalize on these credits and incentives opportunities and would like to learn more, email Rea & Associates. The sooner you move on this, the faster you’ll be able to realize the benefits.

By Chad Bice, CPA (Zanesville office)

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Environmentally Friendly Tax Savings

Thursday, April 14th, 2016

For the last 46 years the global population has come together to channel “human energy toward environmental issues.” On April 22, 2016, the world will once again celebrate Earth Day. You can find a wealth of information on the official Earth Day website, including information about this year’s theme, Trees for the Earth. You can also find some great tips to help you become more energy efficient or help you spread the word about climate change and other topics.

Businesses Can Go Green And Save Green

For business owners, going green can result in significant tax savings as well, which can make environmental responsibility that much more desirable. Take a look at this slide show and find out how green certain eco-friendly initiatives can help strengthen your company’s bottom line.

Environmentally Friendly Tax Cuts For Business Owners from Rea & Associates

Do you want to start saving on your 2016 tax bill? Email Rea & Associates to find out how you can use environmentally friendly tax planning initiatives to ease the tax burden on your business.

By Brian Kempf, CPA (Millersburg office)

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Don’t Miss Out! Claim The Work Opportunity Tax Credit

Friday, March 11th, 2016

The IRS has finally issued guidance on how to deal with the retroactive extension of the Work Opportunity Tax Credit (WOTC) for 2015. In short, it’s an opportunity you don’t want to pass up.

How The WOTC Works For Business Owners

To claim this valuable tax credit, employers have 28 days from the date an employee was hired to certify that they fall into one of the qualifying categories. To do this, the new employee is typically asked to complete Form 8850 by the employer. The form is then filed with the IRS, while another form is filed with the Ohio Department of Jobs and Family Services. Once the new employee’s qualification is confirmed, the business may claim a credit against the income tax of a percentage of first-year wages.

Even though the credit was left to expire in 2015, some businesses continued to collect qualifying information from new hires – just in case. This turned out to be a good strategy because late last year, Congress finally voted to pass the PATH Act of 2015, which, among other things, extended the WOTC through 2019.

While some business owners may have phased out the practice of passing out Form 8850 to new employees, those who continued to qualify their new hires now have a chance to retroactively claim the WOTC credit. Employers have until June 29, 2016, to complete and file paperwork for qualifying employees to successfully claim the tax credit.

Tax Credit Available When You Hire Unemployment Recipient

The retroactive WOTC extension is not the only thing business owners should be aware of. In 2016 and until 2019, hiring long-term unemployment recipients (or an individual who has been unemployed for at least 27 consecutive weeks and who has, at some point, received unemployment benefits) will also qualify your business for the tax credit. To qualify for the WOTC under this new category, your employee(s) must have been hired between Jan. 1 and May 31, 2016.

Don’t miss out on your chance to claim the WOTC. Email Rea & Associates to learn more.

By Christopher Axene, CPA (Dublin office)

Are you looking for more tax help? These articles could help guide you along:

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How Do You Qualify for Tax Credits and Incentives?

Wednesday, August 8th, 2012

Don’t Leave Money on the Table

If your business is thinking of hiring or training employees or investing in fixed assets, you might qualify for a tax credit.  But, tax credits need to be considered up front.  Once you miss the boat on applying for them, it’s too late, even if you would have been a perfect candidate.

Securing these types of credits and incentives can dramatically improve your return on investment. (more…)

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What do InvestOhio Changes Mean for You?

Thursday, June 28th, 2012

If you’re a tax payer who’s invested in a small business through the InvestOhio program, or if you’re a business owner who’s received a credited investment, you could find yourself impacted by new program changes or fees. (more…)

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Investing in a Small Business? Get InvestOhio Tax Credit

Friday, July 29th, 2011

Ohio taxpayers and pass-through entities can now receive a non-refundable income tax credit for qualifying investments to acquire an equity interest in a small business through a program called InvestOhio. Investors may claim up to $1 million ($2 million for married taxpayers filing jointly) through the new tax credit every two years. Any unused portion of the credit can be carried forward seven years. (more…)

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Is it time for your six month financial check-up?

Friday, August 6th, 2010

It’s hard to believe, but 2010 is already half-way over.  How are you doing at hitting your financial goals for the year, and are you taking advantage of the tax benefits this year is bringing? It’s time to consider a six-month financial check-up. Here are some items to consider for the remainder of the year. (more…)

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Can my Summer Day Care Expenses Earn a Tax Credit?

Monday, July 26th, 2010

Arranging summer day care for your children can be challenging, but knowing those expenses may be tax deductible may help. The IRS recently shared some tips regarding the tax credit available for child care of children under age 13. (more…)

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How does the new extension to the homebuyer credit work?

Wednesday, July 7th, 2010

On June 30, Congress passed H.R. 5623, the Homebuyer Assistance Improvement Act of 2010, and President Obama has now signed it. The new law provides the first-time homebuyer credit to taxpayers who were in contract before May 1 but couldn’t meet the June 30, 2010, closing date as required in the prior law. (more…)

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Can making your building green save on taxes?

Friday, June 18th, 2010

When you upgrade your building for energy efficiency, you can save some cold, hard cash. A major incentive has been in place for several years for building owners who upgrade their systems – whether the building is new or used. (more…)

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Can My Organization Earn A Tax Credit For Paying Employee Health Insurance Premiums?

Wednesday, June 2nd, 2010

If your small business or not-for-profit pays at least half the cost of single coverage for employees, it could be eligible for a tax credit of up to 35 percent of the premiums it pays in 2010. (more…)

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