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By Elayne Lieberman

Did you know that over $12.5 billion in federal tax credit benefits are given out annually to businesses, large and small?

 Every successful company is potentially eligible for some type of tax credit, rebate or incentive, in some amount. Yours may be one of them.

The United States offers businesses and entrepreneurs the world’s most abundant tax incentives, but the odds are you’re not taking advantage of any of them.

In addition to federal tax credits, many states offer state tax credits. Tax credits may apply to product development and related activities and operations. They may apply to new manufacturing processes, environmental improvements, software development and quality enhancements to existing products and services.

It may surprise you to know that your business may indeed qualify for some type of tax credit simply because now these credits have been simplified, can be transferred in an acquisition and can be taken retroactively. Some costs that were incurred in years when a company has no income can be carried forward to offset taxes on future profits.

The permanent benefits of federal tax credits can help you drive down your effective tax rate, increase cash flow and represent a dollar-for-dollar reduction of your income tax liability. You can claim tax credits in addition to tax deductions!

There are over 700 federal, state and local credits and incentives programs.

The most lucrative are:

  • On-The-Job-Training Employer Reimbursement Program
  • State and Federal Hiring Credits
  • Work Opportunity Tax Credits
  • Energy Efficient Commercial Building Credits
  • Business Development Credits
  • Research and Development Credits

 

 

Here are a few examples of companies that took action and staked their claim.

  • Auto Parts Store – C Corp, 1 location with 3 employees – $27,587 regional incentives realized.
  • Pool Cleaning and Supply Company – S Corp, 2 shareholders, 1 location with 25 employees – $115,000 regional and national incentives realized.
  • Commercial Construction Company – S Corp, 4 shareholders, 50+ employees, 1 location – $262,000 in regional and national incentives realized.
  • Engineering Firm – C Corp, 1 location, 1 employee – $15,000 in regional incentives realized.
  • Manufacturing Company – S Corp, 2 shareholders, 1 location, 11 employees – $146,069 in regional and national incentives realized.
  • Coin Stamping Business – LLC, 2 partners, 3 employees – $44,000 in federal and state incentives.

Dental offices, chiropractors, aircraft parts and manufacturing companies, plastering contractors, flooring companies and many more have also qualified and received money they had no idea they had coming to them.

Only about 5% of small and medium sized businesses that qualify for tax credits claim their fair share, leaving a lot of money on the table, year after year. The challenge is that there are hundreds of these programs and the effort involved in the application process is daunting.

Most small and medium sized businesses don’t even know these programs even exist. And the businesses that might qualify are overwhelmed with the research and application process and give up.

Is it time to let us help you find out if your business qualifies for some of these programs?

The tax rebate and credit assessment is free. 

Contact us at elieberman@yourb2bteam.com and we’ll start the ball rolling!