Multistate Credits and Incentives
States compete with one another to attract new businesses to their state or encourage existing businesses to invest more capital in their facilities.
Hundreds of economic incentive programs exist at the city, county and state levels. New programs are being implemented frequently. How does your company keep up with where and when to expand or invest? We can help make sure you get your fair share.
In many cases, new or expanded businesses can negotiate property tax reductions on the new or improved property. In other states, newly purchased manufacturing equipment is not exemptedfrom sales tax, but rather the state offers a state income tax credit for the sales taxes paid on the purchase.
Many states have a job creation credits when you build a facility or expand your workforce. In other states, you may be able to take advantage of hiring credits of up to 50 percent of wages paid to qualifying individuals. Many states also provide training funds to help offset the costs of training qualifying employees with the necessary job skills.
Our credit and incentives specialists can ensure your company is taking advantage of the tax credits and incentives available to your business.
Hall & Company provides the following credit and incentives services:
•Apply for and negotiate with state and local governments for credit and incentive packages, if applicable• Prepare benefit analysis among selected states for the best package
•Develop recommendations for future steps in identifying qualified individuals for credits
•Develop recommendations for future data collection
•Develop final report as to past and present credit eligibility
•Discuss final report and amended returns with company management
•Prepare a summary of information required to amend tax returns to claim the credit for all open years, if applicable
The benefits of these programs are noteworthy. For example, in California, a processing company realized over $700,000 in state tax savings by claiming hiring credits, as well as sales tax credits for machinery and equipment over a three year period. In North Carolina, a manufacturer saved more than $45,000 in state tax by utilizing the state’s job creation credit.
If your company is considering expanding its operations within the state or elsewhere, our credits and incentive specialists can help you with site location and selection. Is your company missing out on potential tax savings? We will review the available programs in the states where yourbusiness operates.