Businesses that leverage tax credits and incentives wisely can save significant amounts, taking money that might otherwise have gone to the IRS or a state or local department of revenue and reinvesting it in their business instead. In many cases, even if you discover that you qualify for certain credits and incentives after the fact, you can go back over a period of years and amend tax returns to take advantage of them retroactively.
Many companies are unaware that their day-to-day operations could qualify for a dollar-for-dollar reduction of their income tax liability. Indeed, the R&D tax credit regularly provides a wide range of businesses with a source of extra cash—up to 10% of annual R&D costs for federal purposes and much more when state credits are factored in.
Request a complimentary benefits estimate to receive a preliminary estimate of the potential tax benefit to your organization.
The Employee Retention Tax Credit, known as ERTC, allows employers to generate a refundable tax credit to offset their employment taxes and apply for a refund for any excess credit generated through June 30, 2021, with certain enhancements that apply starting January 1, 2021.
Companies that had a net operating loss (NOL) for 2018 can immediately request a refund by filing Form 1139 to apply the loss, carrying forward any amount not used. The Coronavirus Aid, Relief, and Economic Security (CARES) Act (HR 748) also allows 100% offset of taxable income.
You may be entitled to a disaster relief tax credit if your business became inoperable during the COVID-19 pandemic or sustained damage from a hurricane, wildfire, or other qualified disaster. Fill out a form to learn if your company qualifies for a credit.