Our Business Tax Incentives can unleash new found money to help you grow faster!
RESEARCH & INNOVATION CREDITS (R&D)
If a company has invested time, money and resources into the advancement and improvement of the company’s product or processes, then it’s likely that the organization qualifies for the Federal R&D Tax Credit Incentive Program. However, many firms are unaware of how to qualify or what to even qualify for, so the opportunity goes unclaimed.
While more than 14,000 U.S. companies claim federal R&D credits annually, less than 33% of companies that qualify for the credits apply for them.
- A hidden and immediate source of cash for many small and mid-size companies
- A significant reduction to current and future year’s federal and state tax liabilities
- Over $5 Billion in federal R&D tax credit benefits are given out annually
- Approximately 80% of the $5 Billion goes to a few of the nation’s largest companies
EMPLOYMENT RETENTION TAX CREDIT (ERTC)
The Employee Retention Tax Credit (ERTC) is a refundable tax credit that rewards businesses for keeping employees on payroll during the pandemic. It extended until the end of the third quarter of 2021, September 30, 2021. (You can only receive the ERTC in the fourth quarter of 2021 if you qualify as a “recovery startup business” under Section 3134(c)(5) of the IRS Code.)
Eligible employers can claim the credit against the employer share of Social Security tax equal to 70% of the qualified wages they paid to employees after December 31, 2020, through September 30, 2021. Because qualified wages are limited to $10,000 per employee per calendar quarter in 2021, the maximum ERC amount available is $7,000 per employee per calendar quarter, for a total of $21,000 in 2021. The maximum ERTC amount available in 2020 is $5,000 per employee per year, bringing the total amount of available per employee would be a total of $26,000.
EXPORTING INCENTIVES (IC DISC)
IC-DISC is the last remaining export incentive available to U.S. exporters. It has been around in its current form since 1984, but IC-DISC did not become popular until the Jobs and Growth Tax Relief Reconciliation Act of 2003, which lowered the capital gains tax rate and thereby made it more attractive for exporters.
The different entity types that can use the IC-DISC include flow-through entities (S-Corps, partnerships, LLCs, etc.) and closely-held C-Corps. Additionally, it’s important to note that a company does not have to be the manufacturer of any products to take advantage of IC-DISC, but that the company exports domestically produced products.
Work Opportunity Tax Credits (WOTC)
If an organization is hiring 100 new employees or more each year, then they may benefit from having a CORE WOTC Study performed. Originally designed to assist our Military Veterans in finding work when they returned home from overseas, the Working Opportunity Tax Credit (WOTC) is a dollar-for-dollar tax credit that provides $3,000 –$9,000 per employee hired.
The Work Opportunity Tax Credit (WOTC) is open to any tax paying company in the 50 United States, U.S. Virgin Islands and Puerto Rico, and specifically, it is a federal program that provides tax incentives to employers for hiring and retaining individuals from targeted groups. To claim the credit, an employer must identify a potential hire as an eligible member of one of the targeted groups on or before the day of the job offer.