Federal Empowerment Zone Tax Credits
In an effort to increase employment in distressed communities, the Federal Empowerment Zone program offers a credit up to $3,000 annually per qualified employee.
Indian Employment Credit
Providing a credit against your federal income tax up to $4,000 annually per qualified employee, the Indian Employment Credit incentivizes businesses located on an Indian reservation to employ tribal members.
California Enterprise Zone Tax & Apportionment Optimization
Most national and regional firms operating in California generated significant amounts of hiring tax credits under the now expired California Enterprise Zone program (CAEZ). Despite its expiration, the program will continue to be an important part of a taxpayer’s annual tax planning until the credits expire, which will phase out over tax years 2023-2028.
Tax Credit Co. helps California taxpayers to optimize their utilization of EZ tax credits, generating additional cash benefits and helping to reverse part or all of a firm’s valuation allowance based on the recently enacted 10-year expiration of the credits.
Training incentives are typically funded through unemployment taxes and offered to businesses by state and local authorities. Incentives come in the form of grants, contracts or tax credits to help offset the cost of training, and are generally awarded before training occurs and received by a business after completion. The programs aim to increase trainee wages, job retention, skill sets and/or industry growth.
Value to Your Business
The award is usually granted based on the merits of the application and at the discretion of the issuing authority. The size of the award is primarily driven by:
- Trainee wages (trainees x wage rate x hours in training)
- Instructor costs (instructor wages for preparation and instruction)
- Materials and facilities (book costs, materials licensing and facilities rental)
Candidates for Training Incentives
Businesses operating in any of the 38 states with incentive programs are eligible. Top programs are in:
- Manufacturing and/or Distribution
- High-tech, Biotech and Healthcare
- Information Services
- Finance and Insurance
- 14 years of expertise in training grants and credits across many state programs
- Close relationships with state administrative agencies
- $300,000 average credit per engagement
- 75% utilization rate (vs. average of 40-50%)
- Zero grant applications denied
Sales and Use Tax Incentives
Are you overpaying sales tax?
Sales and use tax laws and regulations are continuously changing, and keeping up can feel like a full-time job. Each state exempts specific items and services from sales and use tax, and if you’re not up to speed, depending on the size of your business, you may be overpaying by the millions per year.
There is a better way.
Our team of tax recovery experts is focused on sales and use tax optimization – and we do it better than anyone else. We work with you directly, leveraging our deep expertise to maximize your industry-specific opportunities.
Who can benefit?
All companies should perform a full sales and use tax refund review at least every 4 years, especially those in manufacturing, retail, high tech, defense, healthcare or hospitality industries. You may be well-suited for a review if:
- Your company has non-payroll and non-utility related expenditures over $10 million annually
- Your company is under a pending or ongoing sales tax audit
- Sales and use tax audits are consistently resulting in “no liability” or refund from the state
- Your company has no structured sales and use tax review process for purchases
- No one is responsible for regularly monitoring sales tax legislative changes and their impact on operations
Tax Benefits of Cost Segregation
Cost segregation studies and purchase price allocations identify and reclassify building components into the appropriate MACRS tax depreciation categories. Using IRS and Tax Court decisions, we identify those assets that qualify for accelerated depreciation through the use of shorter tax life depreciation schedules.
- Maximized annual depreciation
- Reduced upfront income tax costs
- Lowered cost of capital
- Improved cash flow
- Improved shareholder value
- Ability to write-off individual assets in future when removed
Cost Segregation helps owners who have:
- Purchased real property since 1987
- Constructed a new facility since 1987
- Installed leasehold improvements, renovated, expanded or restored an existing property
- Paid federal income tax on these properties
We Take Care of the Details, You Take the Benefits
You can gain $0.20 on every $1 of reclassified cost in after-tax benefits. In our Cost Segregation Study, we follow a structured methodology to analyze building plans, make onsite visits, document our findings, and produce a detailed report consisting of:
- An overview of the property, purpose of the analysis, and the approaches used to perform the work
- Our conclusions for the asset values, photographs of the property, and schedules describing the assets and summarizing the results
- Summary Schedules - segregated among 5, 7, 15, and 39 year class life property
- Detailed Schedules - arranged by class life and including asset description and allocated values
Green Energy Incentives
Businesses may be eligible for tax credits by implementing environmentally friendly practices, such as installing energy efficient systems or switching to a hybrid/electric fleet. By doing what’s right for the environment, these businesses are also doing what’s best for their bottom line.
State Jobs Credits
Seeking a competitive advantage in attracting businesses, many states offer credits for hiring or retaining employees. They may focus on reducing unemployment among certain underserved groups in the population, or on creating a skilled workforce by prioritizing quality jobs in certain industries.
Many state and local governments provide tax, cash and other incentives for businesses that relocate, expand or consolidate operations in their jurisdiction.
- State and local tax credits
- Cash economic development grants
- Infrastructure grants
- Training and retraining incentives
- Real and personal property tax abatements
- Sales tax exemptions
- Utility rate reductions
- Subsidized land and buildings
- Low-cost financing
- Fee waivers
Contact us to see how we can help your business expand.