There are many different programs and each programs vary from one location to another. However, we have found that some form of incentives are available for virtually every business.
Feel free to explore the following areas of incentives.
When you are ready to move forward, we are happy to provide a customized assessment tailored to your business
- Hiring employees
- Creating Jobs
- Performing Research & Development activities
- Opening new facilities or moving your business
- Training your employees
- Making your business more energy efficient
- Investing in specialized businesses
- Renewable Energy
- Film production
A multitude of programs exist at both the Federal and the state level to reward businesses for hiring employees.
These programs are typically designed to encourage hiring people from designated groups. For example, you have probably left dollars on the table if you have hired any veterans, people who were formerly unemployed, public assistance recipients, residents of designated communities, supplemental security income recipients or disabled individuals.
which provides for tax credits of up to $9,600 per individual. However, state programs can range anywhere from $100 up to $65,000 for each eligible hire!
Because these are intended to be hiring incentives, most programs require screening employees on or before the date of job offer. Additionally, there is a certification process that must take place before claiming the credit(s). Our firm specializes in taking care of these administrative requirements on your behalf.
Many states have created programs to incentivize businesses to create net new jobs in their state. This can be an increase in headcount overall for the company or can often be claimed even for a movement of jobs from one state into a different state. Many businesses don’t realize that these programs are not limited to major expansions and can be available even for normal, organic growth.
Incentives are typically in the form of a state income tax credit earned over a number of years. However, many newer programs are set up to allow for a cash payment in the form of a grant to the business.
Our experienced professionals can help to sort through which programs are a good fit for your business and will take care of all the administrative roadblocks so that you can realize these benefits without burdening your staff.
The Research and Development (R&D) credit is a program offered by the Federal government as well as many states to provide incentives for businesses to invest in technological innovatin and in hiring workers to perform qualifying activities
Value Of Research & Development Incentives
Businesses can see rebates from the government of 10% or more of their qualifying research and development spend when combining both Federal and state programs. Additionally, as there is no cap on benefits available to an individual company, this often provides significant free capital to participating businesses.
Originally limited to laboratory sciences, this program has evolved and expended to include a broad base of industries. Examples of businesses who benefit from the program include:
- Computer hardware
- Manufacturing and Fabrication
- Life Sciences
- Tool & Die Casting
Refunds And Carryovers
Even if you have no tax liability in the current year, we may be able to secure refunds of taxes paid in the last three years. Also, the credit may be carried forward for up to twenty years.
In addition, many states have “refundable” tax credit programs which allow qualifying businesses to receive cash payments even if they have no tax liability.
One of the core functions of state economic development groups and commerce departments is to entice businesses to locate or expand in their community. In the long term, bringing new businesses has the effect of increasing employment, creating additional tax revenue and can even help to revitalize targeted areas.
As a result, state and local agencies are often willing to make an investment in seeing new businesses come to their community. Depending on the limitations of each community, this investment can come in many forms, including:
- cash grants
- sales/use tax waivers or rebates
- free land or other infrastructure grants
- property tax abatements
- low interest and/or forgivable loans
- payroll tax rebates
- income tax credits
- Training grants
- Tax increment (TIF) financing
Most businesses find that they must invest in job training for their employees in order to be successful. However, few businesses are aware that government funds are available to offset part of the cost of creating and delivering that customized, business specific training.
Although different in each jurisdiction, most job training grant programs will reimburse employers for 50% to 75% of the direct cost of training, whether internally or externally delivered. This can enable businesses to invest much more significantly in training than would otherwise be possible. Most grants for mid to large businesses are in the range of $200,000 to $500,000.
Energy efficient measures such as lighting controls and LED lighting have been a top priority of companies with a sustainability commitment for many years. However, government agencies and utilities have recently been offering significant incentives which make the switch to energy efficient measures cost effective in a very short timeframe. In fact, it is not uncommon to see an ROI of one year or less in many parts of the country.
Our firm can assist with building a comprehensive national strategy tailored to your business. This plan will optimize the available incentives in the context of the efficiency measures which will be most effective with your national footprint.
Renewable energy such as solar can be a wise investment for profitable businesses. Combining the Federal investment tax credit as well as state and utility incentives, investing in solar power can often result in a payback of 3-4 years and a 25%+ annual rate of return for the business over a twenty year period. Our sustainability specialists can assist with reviewing your national property portfolio and advising your company on the most beneficial areas to focus on renewable energy investments. We can also assist with the administrative requirements to capture these incentives.
Realizing both the direct and indirect benefits of film production in their states, many jurisdictions have created significant cash incentives of up to 50% of the cost of a production to lure filmmakers to their state. These programs also include postproduction, game development and filming commercials in many cases.
Our team can assist with capturing these incentives from initial application through to final receipt of payment. Additionally, with our holistic approach, we are often able to identify other funding sources from these jurisdictions to further enhance the benefits.