Business tax credits and incentives.  Serving Rincon, Savannah, Atlanta, Duluth, Georgia

Tax Credits & Incentives

The main objective of federal and state tax credits and incentives is to grow our nation’s economy. So why do they seem so allusive? Why aren’t most small and mid-sized businesses taking advantage of them?  Goldman Sachs sums it up nicely.

  

SURVEY OF GOLDMAN SACHS 10,000 SMALL BUSINESSES AND RELATED FOCUS GROUPS

FEBRUARY 13 –14, 2018 WASHINGTON, DC


Owners are often personally responsible for a variety of business functions. They often serve simultaneously as CEO, CFO, General Counsel and Chief Compliance Officer, among other roles. Nearly 85% of owners are responsible for ensuring that their business complies with local, state and federal requirements.


  • More than half of business owners noted difficulty in learning about all the local, state and federal requirements that affect their businesses.


  • The reasons vary but center on overly dispersed information (70%), frequently changing requirements (“keeping up,” 50%+), staff at agencies tasked with enforcement being unable to explain rules or answer questions (30%) and unreliable information (25%+). 


  • Business owners find it difficult to comply with local, state and federal regulation given complex processes and significant paperwork involved. They face similar barriers in doing business with larger corporations and with the public sector.




I have found that these three reasons have kept businesses from saving hundreds of thousands of dollars, sometimes millions of dollars on programs that were created and designed to help them grow.


One other reason is the cost to work with someone who is a specialist.   The only time you will pay ABS for tax credit and incentives help is if you qualify, and you are able to save or make money from the tax credit or incentive.  What does this mean?


ABS will talk with you to see if you qualify.  Once this is determined we will request information to estimate the amount you will get for the credit or incentive.  Up to this point you pay nothing. That's right, there is no charge to determine if the credit or incentive is right for you.  


The estimated amount is always conservative, and most times the actual credit or incentive will be more than the estimate.  Once this is determined our fees will be presented.


A recent client had been told by his CPA that there were no other strategies to help him with his tax liability.  As mentioned in the Goldman Sachs survey above unreliable information almost stopped him from looking for someone else to help.  To make a long story short, for his current year, and amending his two previous years he received close to $400,000 in federal and state tax credits for Research & Development.  I asked him if it was worth the $15,000 cost, and he replied, "absolutely." Needless to say he will not be paying income tax for several years, and he will be able to keep his state employee withholding which is approximately $20,000  a year for many years to come.

Specialties

R&D Tax Credit

Low Income Housing Credit

Federal Empowerment Zone Tax Credit

Federal Work Opportunity Tax Credits