Thomas & Company has a National Tax Credits and Incentives division made up of partners and senior managers – each with 15 to 30+ years of experience.
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- Employment Credits and Incentives
- Work Opportunity Tax Credits (WOTC) – A federal income tax credit is available for hiring individuals that are members of certain targeted groups. The credit ranges from $2,400 to $9,600, depending on the targeted group of the new employee. Read more…
- State Point-of-Hire Employment Credits – Many states offer Point-of-Hire Employment Tax Credits for hiring employees similar to those who qualify for WOTC. These credits can range from a few hundred dollars to up to $35,000 per qualifying employee. Read more…
- Federal Empowerment Zone/Renewal Community Credits – Tax savings of up to $1,500 (RC) and $3,000 (FEZ) are available for each employee who works at a business in a designated zone and resides in the same zone. Read more…
- Federal Indian Employment Credit – Employers are eligible for a tax credit of up to $4,000 for each qualified employee. The credit is available for new or current employees. Read more…
- Wage Subsidy Services – Based on funding available under the American Recovery and Reinvestment Act (ARRA), many states have established temporary wage subsidy grants that allow employers to utilize qualified new employees for a set time period. Read more…
- Negotiated Incentives & Training Grants
Companies invest millions of dollars to remain competitive every year, but what they don’t realize is that there are credits and incentives available to help reduce these costs. For example, most states offer companies the ability to reduce capital costs and expenditures associated with new expansion, relocations, job creation and equipment investment via Negotiated Economic Incentives.
Examples of Negotiated Economic Incentives include:
- Cash Grants
- Sales & Use Tax Exemptions
- Infrastructure Grant
- Fast Tract Permitting and Approvals
- Low Cost Financing
- Free or Reduced Cost Equipment
- Property Tax Abatements
- Utility Rate Reductions
- Energy Abatements or Rebates
Grants, credits and incentives are also available to help reduce up to 50% of companies’ training costs.
Types of training that qualify include:
- Basic Skills
- Efficiency/Quality Improvement
- Management Training
- Computer Training
- Leadership Training
- Customer Service Training
- Technical Skills Training
- On the Job Training
- Customized Training
- Location Based Incentives
Most states offer companies the ability to reduce their tax liabilities via tax credits, incentives and exemptions. These credits and incentives reduce state income, sales and property taxes, resulting in a lower effective tax rate for the company.
Using state-of-the-art mapping capabilities and our proprietary database of credits and incentives, Thomas & Company will implement a process to identify and capture available Location Based Credits and Incentives.
Examples of Location Based Tax Credits and Incentives include:
- State Enterprise Zones / Geographically-Based Credits
- Federal Empowerment Zones and Renewal Communities
- State Point-of-Hire Tax Credits
- Job Creation Tax Credits
- Investment Tax Credits
- Industry Specific Credits
- Energy Credits
- Training Tax Credits
- Inventory Tax Credits
- Personal Property Tax Credits
- Charitable Contribution Tax Credits
- Child Care Credits
- Education Credits
- Research & Development Tax Credits
In today’s highly competitive landscape, companies must continually invest in product/process development. Taking advantage of this dollar-for-dollar tax credit against your federal and/or state income taxes is one way to recoup those investment costs. Unfortunately, many companies fail to take advantage of this benefit and close to 45% of the available credits go unclaimed each year. In addition, due to the highly complex nature of R7D tax credits, even companies that are claiming the credit could be leaving valuable dollars behind by not including all qualifying costs. T&C can help.
Your firm may be eligible to claim R&D tax credit if engaged in any of the below:
- Develops new or improved products, processes, methods or formulas
- Develops prototypes or models
- Designs and develops tools, molds or dies
- Develops and applies for patents
- Develops new technologies
- Conducts testing and trials of new concepts and technologies
- Develops and/or tests new materials
- Purchased new equipment and must make modifications in order to reach design speed or design capacity
- Develops or improves production or manufacturing processes
- Develops or modifies production control software
- Automates internal processes
- Modifies products or processes to meet your customer’s specification
- Develops algorithms for software
- Tax Benefit Exchange
Were you aware that many states offer the ability to purchase certified tax credits at a discount?
To nurture the success of local companies or encourage future projects in a certain location, some states have elected to establish special programs to enable highly vetted companies in targeted industries and areas to sell their tax benefits. While the tax benefit sellers are carefully screened, qualified and even certified, any company in the state with a liability can buy tax benefits. The typical transfer puts valuable cash into the hands of the seller to feed new business or its next project and saves the buyer anywhere from 7% to 14% of its state tax liability.
States with substantial sellable tax benefits include Alaska, Connecticut, Georgia, Illinois, Louisiana, Massachusetts, Michigan, New Jersey, Pennsylvania, Oklahoma and Oregon.