As a business owner, you’re always looking for ways to save money and boost your profits. Leveraging federal, state, and local tax credits and incentives is one way to do this. However, navigating the complex tax credits and incentives landscape can be challenging and confusing. How can you tell which credits and incentives your business is eligible for?

This is where a MaxCredits Credits and Incentives Study can help. It’s a credits and incentives assessment designed to help businesses identify and apply for the eligible credits and incentives, MaxCredits uncovers savings opportunities and transforms potential tax expenditures into positive cash flow.

Explore how this unique tool can benefit your business with insight on the MaxCredits Study, who’s eligible for it, the benefits it can provide, the process involved, and what triggers a study.

What is a MaxCredits Tax Credits and Incentives Study?

A MaxCredits Study provides clients with visibility into federal and state incentives to offer actionable strategies for pursuing and monetizing tax-saving opportunities. It recommends the credits and incentives to pursue by reviewing tax credits currently being claimed, as well as a high-level information regarding current business activities, growth, and future expansion or exit plans. Past, present, and future projects may be eligible and provide new or additional value-add tax credit opportunities.

Tax Credits and Incentives Evaluated

A comprehensive review, the MaxCredits Study looks for opportunities in a wide range of business areas, including:

• Job creation, hiring, and wage-based credits
• Transferrable credits
• Research and development credits
• Energy based incentives, including clean and alternative fuel
• Capital projects and fixed assets
• Negotiated discretionary incentives, including cash grants and utility savings

Who’s Eligible for a MaxCredits Tax Credits and Incentives Study?

Businesses in a wide range of industries can use a MaxCredits Study to identify federal and state tax credit and incentive opportunities they may qualify for.

What are the Benefits of a MaxCredits Tax Credits and Incentives Study?

A MaxCredits Study can provide several benefits, including:

• Identify tax credit opportunities
• Apply for applicable credits
• Maintain compliance
• Reduce federal and/or state tax liability
• Plan for the future
• Boost cash flow

What’s the MaxCredits Tax Credits and Incentives Study Process?

The MaxCredits Study process involves several steps:

• Discovery and Scoping. Identify and review current federal and state tax benefits being claimed by the business.
• Understand and Evaluate. Interview key stakeholders regarding current and planned business activity and obtain a high-level information request list to evaluate areas of opportunity.
• Document. Analyze the information collected and prepare a management report with a summary of the findings.
• Report Findings. Deliver the report and guidance to key stakeholders to review the opportunities identified you may be entitled to claim.
• Plan and Collaborate. Prioritize areas of opportunity and determine next action steps and timelines.

What Can Trigger a MaxCredits Tax Credits and Incentives Study?

Many existing and planned business activities can qualify for federal, state, and local tax credits and incentives. The federal government and state and local jurisdictions provide several tax credit incentives to businesses based on:

• Various types of business activities
• Future growth
• Physical location(s)
• Hiring
• Investment opportunities
• Research and development
• International expansion
• Manufacture or produce renewable energy
• Monetization of tax credits to improve cash flow

If your business has experienced one or more of these activities:

• Expansion or growing operations
• Operates in multiple states and hasn’t explored or reviewed state credits and incentives
• Hasn’t reviewed fixed asset classifications for federal or property tax purposes
• Invests in product or process development, energy efficiency, alternative fuels or electricity, carbon sequestration, or semiconductor manufacturing
• $5 million or more in planned capital investment
• 250+ existing employees at a facility; 500+ for Texas EZP
• Expecting to hire 50 or more new jobs
• Any large, unannounced projects, such as expansions, renovations, upgrades, or maintenance
• Expect to transition from a position of tax losses to tax liability
• Intentional effort to lower federal and state tax expenses and labor costs
• Constantly hiring due to high turnover

We’re Here to Help

To learn more about the MaxCredits Study and how it can help your business identify business-boosting opportunities, contact your Moss Adams professional.

Additional Resources

• Tax Credits & Incentives Services
• State & Local Tax Services