07.21.15 |
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Be Informed: Take Advantage of Tax Credits and Incentives

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There are an abundance of tax credits and incentives available to businesses that can help offset costs and lower tax rates. These credits can cover recruiting and hiring, training employees, implementing new technology, location changes or expansions, economic growth opportunities and more. In addition to federal and state tax incentives, there are discretionary and supplementary incentives that can be negotiated if they’re in the best interest of the business and government (i.e. the business is stimulating growth and there isn’t a current tax code incentivizing this growth).

When filing for a tax credit, businesses need to ensure they are filing accurately and on time since the government may be tightening up its approval process after some costly mistakes the last few years. According to a recent Forbes article, the IRS paid three billion dollars in erroneous business tax credits in 2013 to corporations that didn’t qualify for those credits. In addition, corporations claimed more than $93 billion worth of tax credits that year, yet many of the credits were incorrect, according to the article.[1] This revelation makes the process of understanding and accurately filing for tax credits even more important for businesses.

As illustrated by the statistics above, identifying, capturing and negotiating tax credits and incentives is sometimes easier said than done for many businesses. Oftentimes, it’s difficult for businesses to identify and capture all of the tax credits and incentives that they qualify for as well as be knowledgeable about the credits that they aren’t qualified to receive. In fact, of the 3,000 federal and state incentives available, an average of 50 percent may go unclaimed each year, according to internal ADP data.

Rather than guess or let available tax credits slip by, find a trusted tax credits provider to help you become more informed about the tax credits that your business may be able to take advantage of going forward.

For more information on strategies for capturing business incentives, click to view ADP’s 2015 Tax Credits webinar and the 5 Business Tax Credit Types to Consider in 2015.

 
Learn More About ADP SmartCompliance® Tax Credits
 


 

The information provided in this blog post is for informational purposes only and not for the purpose of providing accounting, legal, or tax advice.  The information and services ADP provides should not be deemed a substitute for the advice of any such professional.  Such information is by nature subject to revision and may not be the most current information available.

[1] http://www.forbes.com/sites/robertwood/2015/04/24/irs-paid-3-billion-in-tax-credit-mistakes-plus-5-8-billion-in-erroneous-refunds/

 


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