Seizing Opportunities for Credits and Incentives
A Service Spotlight
The number of credits and incentives available to businesses is vast in many industries, including manufacturing, research and development, processing, high-tech, service, office, logistics and more. Unfortunately, far too many companies miss these opportunities.
In fact, research indicates that more than 50 percent of credits and incentives available go unclaimed every year. That ultimately means a significant amount of money is lost every year for businesses that could reinvest those funds to grow their companies, reward employees, and add new initiatives.
Jurisdictions all across the country use statutory tax credits and negotiated economic incentives to induce taxpayers to expand operations in specific jurisdictions, thereby generating tax revenue.
Daszkal Bolton has a team of professionals who are devoted to identifying and filing for credits and incentives available for companies across these industries.
Companies currently planning for growth or reorganization in terms of new employees, footprint, acquisitions, relocation of headquarters, or large capital investments in new facilities or infrastructure are among the most likely candidates for credits and incentives.
Reorganizations can also include downsizing, whereby a company is consolidating employees from multiple locations into one. Jurisdictions often compete against each other for new jobs and businesses. Given that fact, any organization that plans to expand into a new state might find that it is able to consider all employees in the new jurisdiction new employees through relocation or the job market.
Companies that have greater number of employees, capital investment, high wages, or operate in attractive industries, often attract greater attention and have higher success rates. Many programs provide a window of two to five years to make a capital investment, including hiring. Thus, a long-term strategy can yield the greatest incentives.
Much smaller projects (e.g. plans to hire only five to ten people) can be equally worthwhile for companies to consider. For example, a Georgia jobs tax credit offers up to $4,000 per employee for up-to five years, requiring a range of two to 25 new jobs based on the location within the state, and the statutory credit can be used directly on the tax return.
Every credit or incentive program has its own stipulations and requirements. The requirements might seem cumbersome at first, but the team at Daszkal Bolton is able to remove the complexity and manage the process for qualified companies. Furthermore, the Daszkal Bolton advisors understand the need to look at each company and its unique situation when determining the ideal method for accepting credits. Some might benefit most from accepting the credit on a tax return while others will be better served by accepting a cash grant, sales/property tax exemption, payroll tax reduction, or training funds. What is available depends on the specific program, and what is ideal depends on the specific qualifying company.
Whether planning to relocate, expand, hire, enter into a new lease, or make a capital investment, companies are encouraged to contact Daszkal Bolton to discuss their plans to ensure they are not missing out on valuable incentives. After all, those goals and objectives can be more quickly realized when additional funding is available to make them come true.
To learn more about how Daszkal Bolton can assist your organization with credits and incentives programs, contact Faith Gorman at 561.886.5286 or [email protected]