Credits & Incentives
The state and local tax landscape is replete with opportunities to reduce taxes, conserve cash, and increase the return on capital investment by taking advantage of tax and related incentives. Our experienced state and local tax professionals have worked with state and local governments across the country to identify, negotiate and claim funds available to a variety of companies in different industries and at different stages of growth, from startups to the Fortune 100. Credits and incentives may be available to any business. Companies with a higher likelihood of opportunities for credits and incentives are those that are expanding, moving operations or hiring and training employees.
Andersen Tax can work with you to identify those credits and incentives that are advantageous for your business to capture. Some of the current credits and incentives include:
- Enterprise Zones: Many states and local governments provide incentives based upon the location of the business in a favored zone. Companies located in these areas may be eligible for significant tax credits.
- Capital Investment Credits: Several states provide tax credits based on the level of capital investment in machinery and equipment in the state or a favored area. Some of these credits may be industry specific (e.g., agricultural equipment, film production equipment or manufacturing machinery).
- Hiring Credits: Many states and several cities provide tax credits for increasing headcount or hiring workers that meet certain eligibility criteria (e.g., disability, Native American heritage, military service veterans or low income).
- Training Credits: Several states provide credits for training expenditures.
- Business Expansion Funding: Many states and localities provide funding for companies that intend to make capital investments and create jobs. The funding may range from cash grants and refunds of expenditures to low- or no-interest financing.
- Tax Abatements: Many governments are willing to negotiate abated or lower property tax, sales and use tax, and income/franchise tax.
- Training Funding: Several states provide cash grants for a company training its workforce, especially in new technology.
- Solar and Wind: The expansion of alternative energy has created a vast patchwork of incentives. Income tax credits and property tax abatements are most common.
- Geothermal and Other: An ever increasing number of states are expanding incentives to reach energy efficient technologies.