Dresser & Associates

Tax Credits: How to Reduce your Taxes to the Government Immediately

Photo credit: Tracy O

Turn on the TV, walk into Home Depot, or glance at your local interstate billboard and you might find tax credits advertised on all three. In today’s economy, tax credits are being marketed to the individual level more than ever, but very few businesses take advantage of corporate tax credit opportunities available to them. Why? Many companies are not aware of these tax credits; here are a few reasons. First, these programs are not marketed to most companies by the state or federal government. Second, most companies rely on an accountant to handle tax matters, but most accountants are not aware of or specialized in all of the tax credits for their clients.

Tax credits are important to your business because they immediately reduce your taxes and represent direct profit for the company. Each state and the federal government offers tax credits and incentives for business activities such as training, hiring, investment, business expansion, and job creation. Here are a few examples of what the government provides to businesses across the country.

Did you know that you can earn up to $9,000 per new hire just because they received certain government benefits? It has been well publicized that the number of families on food stamps now tops 42 million and 1 in 8 families receive this government benefit. If you’ve hired someone or their immediate family member that is receiving food stamps, your business could receive $2,400 for that hire.

In Georgia, a company can capture up to 50% percent of training costs including employee wages, vendor fees, and travel expenses related to training in areas like technology, software and operations. California provides almost $40,000 over a 5 year period for businesses that create jobs in certain parts of the state. In almost every state, the Federal Government provides a tax credit of up to $4,000 for businesses that operate and employ people in specific areas of the state designed for economic development.

In today’s economy, with uncertain and rising tax rates, your business can not afford to overlook the tax credits available to immediately impact the bottom line, improve your cash positions, and increase profitability.

For more information on increasing the profitability for your business, contact David McMillian at (706) 302-7095 or dmcmillian@mcataxcredits.com.

Contributed by:

McMillian & Associates, Inc

Posted in Compliance & Taxes | Comments Off on Tax Credits: How to Reduce your Taxes to the Government Immediately

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