What are Business Tax Credits and Incentives (C&I)?
Federal and state governments offer thousands of lucrative employment tax credits and economic incentives to help businesses reduce operating costs, tax liabilities and recoup investment expenses. Businesses that take advantage of these credits and incentives can significantly impact their bottom line now and for years to come!
What tax credits and incentives should employers be looking at?
Although there are thousands of credits and incentives MOST are not appropriate for small businesses or are not applicable as they target very specific activities. That said, there are valuable credits that small and medium size businesses should be considering that they may not be taking advantage of. Here are a few of the more valuable credits for small and medium sized businesses:
- Employee Retention Credit (ERC)
Refundable tax credit up to $5,000 per employee in 2020 and up to $7,000 per employee per quarter (for the first three quarters) in 2021 totaling up to $26,000 per employee.
- Disaster Credits
Not the ERC! This is a separate credit of up to $2,400 per employee for employers impacted by certain major disasters (think hurricanes, wildfires, flooding, etc.) who continued to pay employees.
- Federal Empowerment Zone Credit
This is a credit of up to $3,000 per qualified employee per year for employers who employ individuals who live and work in certain economically distressed areas.
- Paid Family and Medical Leave Credit
If you pay your employees while they’re on leave for certain reasons (such as the birth or adoption of a child (including time to bond with the child), to address the employee’s serious health condition, to care for a family member with a serious health condition, or to address exigencies arising from a family member’s active duty), you may be eligible for a credit of up to 25% of the wages paid during the leave period.
- State Tax Credits
There are well over 3,000 state and local tax credits and incentives that incentivize economic development, hiring and other certain business activities. These can be lucrative and at times can lead to above the line operating savings.
- And many more!
ACAPrime C&I Guarantee: We don’t promise the world in terms of the value of tax credits a business can claim; ACAPrime takes a conservative approach to evaluating and claiming credits that a business deserves so that the claim is sound and accurate. ACAPrime will work with you, your client and your client’s other providers to make sure your client gets the most out of the credits and incentives they qualify for while ensuring to not create any additional scrutiny from government agencies. We make sure everyone is onboard and comfortable with the credits and incentives claimed.
Why ACAPrime for Business Tax Credits & Incentives?
You know and trust that ACAPrime provides outstanding service and quality in the Affordable Care Act reporting. Business tax credits are a natural extension of what we do all ready. But instead of avoiding penalties, we are actively looking to add revenue. We are experts in data aggregation and analysis resulting in quality compliance and tax reporting. Tax credits and incentives have traditionally only been available to large employers with small to medium size employers being underserved by the “big” firms – ACAPrime is here to help all employers of any size take advantage of the tax credits and incentives they qualify for and deserve. Our C&I Practice Leader, Ben Smith, has over 10+ years providing tax credit and incentive services to both large and small companies helping secure tens of millions in tax savings.
About ACAPrime
ACAPrime, part of ChannelBound, LLC was built by Enterprise Software Application Integrators and Compliance Experts. We are able to easily handle complex data sets from multiple sources. Our process incorporates both manual and automated quality auditing to ensure accurate reporting in an efficient manner. For more info, see our domain at: www.ACAPrime.org/taxcredits/