We help companies all over Georgia identify and obtain tax credits. Tax credits maximized. Risk minimized.

Archive for July, 2011

Investment Tax Credit Overview

Filed under: Investment Tax Credit
July 28, 2011

The ITC could be a great option for your manufacturing or telecommunications clients.  This tax credit is based on the costs of additions to property, plant and equipment assets, and includes capitalized items and operating leases.

The tax credit $ amount is a percentage of the costs (1%, 3% or 5%), based on the county (Tier 1, 2, 3 or 4) where the assets are located.  For example, a $1,000,000 plant expansion in Gwinnett County (Tier 4 = 1%) will generate a $10,000 tax credit.

The ITC application (Form IT-APP) must be approved by DOR before the credit can be utilized.  Since the ITC is taken the year after assets are booked, you can look back 4 years for qualifying investments.  This credit is limited to 50% of income tax liability each year, but unused credits may be carried forward ten years. To download the PDF form and details, click here.

 

JimSig

Competitiveness Initiative Update

Filed under: Policy
July 28, 2011

We have now attended the first 5 of 12 GA Competitive Initiative (GCI) meetings around the state.  The sessions are averaging around 200+ attendees, but so far continue to be attended by mainly education, government and economic development people (not many from private businesses).  Some specific policy ideas are getting through, although it is pretty hard for the GCI organizers to herd the cats!

The five-hour meeting format with facilitated sessions around 6 topical areas is okay in theory, but it is pretty hard for any of our clients to find that much time away from business.  We are looking for ways to get their opinions heard anyway, either remotely or electronically, and will let you know specifics when we know more.

To participate in any of the remaining sessions, registration is required (click here).  Hopefully we will see you at one of the sessions!

DaleSig

Healthcare and Updated HIPAA

Filed under: Other Incentives
July 28, 2011

The Meaningful Use legislation (ARRA, HITECH Act) included many changes to HIPAA (Click here )

Here are a few key items:

  • Privacy & Security – access to all health information data must be controlled — this includes laptops, thumb drives and remote access.
  • Major penalties for violators – up to $1.5 million per year for violations involving willful neglect.
  • Business Associates – access to health information for patients OR employees of healthcare providers. Business Associates must comply with HIPAA regulations and are subject to the same penalties.  NOTE: a CPA firm may be considered a Business Associate.

HIPAA has gotten more stringent, encompasses more areas, and significantly increases the $ penalties.

 

JimSig

Are Things Picking Up?

Filed under: Management
July 1, 2011

We are hearing that things are picking up in some areas of Georgia’s economy. This is based on our informal survey of clients, CPAs, bankers and other business advisors. 

Indicators include employees are working overtime, temps are being added, and investments are being made.

As your clients are making these decisions, try to give them advance notice of the potential tax credits they could realize. You want to make sure they do at least the minimum so they can utilize these incentives. For example:

  • Add jobs to get Job Tax Credits
  • Upgrade technology to get Retraining Tax Credits
  • Plant expansion/new equipment to get Investment Tax Credits

Ask to participate in their planning meetings and talk with their business advisors to make sure you are included.

Competitiveness Initiative Update

Filed under: Policy
July 1, 2011

We attended the first of 12 GA Competitive Initiative (GCI) meetings in Albany.  There were 200+ attendees, but most of them were education, government and economic development representatives (not many from private businesses).  The main needs identified centered on workforce development (that is, having a capable and ready workforce and strengthening the existing workforce). 

The five-hour meeting format includes facilitated sessions around the 6 topical areas that the Initiative has identified: business climate, education & workforce development, innovation, infrastructure, international opportunity and growth, and government efficiency and effectiveness. Session leaders collect input from attendees, and real-time reports are generated for review.

You and your clients need to participate if you want to be a part of this initiative – OR – accept what the legislators decide during the next session.  Registration is required (click here).  We hope to see you at one of the sessions!

Healthcare and Meaningful Use $

Filed under: Other Incentives,Retraining Tax Credit
July 1, 2011

The federal Meaningful Use incentive is a carrot and stick approach: play now & get paid now (carrot) – OR – don’t play and get paid less (stick). 

Healthcare providers (or Eligible Professionals to use Meaningful Use terminology) can receive a maximum of $44,000 for Medicare or $63,750 for Medicaid over a 5 year period.

This incentive is in addition to other incentives such as PQRS and e-Prescribe. The federal agency CMS has a good summary (click here).

If your client wants to participate in Meaningful Use, this is a great time to do long range planning with the practice and equity owners to discuss tax planning, financial impact, operating agreements, employment contracts and other related items.