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

Archive for December, 2011

No More Projects, Even for Tax Credits!

Filed under: Retraining Tax Credit
December 29, 2011

You have probably heard your clients say they don’t want any more projects because they are too busy. We see many businesses where the equity owners want the tax credits, but their administrative team has other priorities (and there is nothing in it for them personally). Here are a few points that could help when you talk with your clients:

  • The $$ benefit is available NOW - The client pays Georgia income taxes and has installed new software. But with the one year amended tax return limitation, this tax credit may be gone forever (you snooze, you lose).
  • All the information you need is fresh - vendor invoices, HR/payroll data, and employee training information (so it’s easy to gather).
  • Benefit to everyone - The tax credit $$ can be re-invested into the business to help it be more successful and grow (maybe pay raises for employees?).

We recently helped a 16-employee physician practice get a credit of over $17,000 for their new EMR software. The practice manger said she spent about 1 hour over the entire duration of the project. Her value added was over $17,000. How many projects can provide hard ROI of $17,000/hour net-after-tax cost savings to a business?

Your clients need your help to see the bigger picture of tax credit benefits and to understand that priorities may need to be temporarily changed.

JimSig

Georgia Competitiveness Initiative Progress

Filed under: Policy
December 29, 2011

GCI is in its Quiet Phase – in other words, either they are writing their report due 12/31 or they decided to take the holidays off!

No, hopefully they are putting the finishing touches on the report this week and we should all see something in early January.  After that, it goes to our policy makers to be converted into legislation.  That’s what they call making sausage!  

Here’s what we think they want to do -

  1. Make targeted changes to tax policy, but no wholesale tax reformin this election year
  2. Maintain statutory incentive tax credits, but make some of them more effective for economic development and job creation
  3. Add State discretionary incentives to help close economic development deals for Georgia

Earlier this month, I attended the State Legislature’s “Special Joint Committee on Georgia Revenue Structure” hearing at the Capitol.  Called at the last minute, only about half of the members attended, so nothing got done, at least on the surface!

We will keep you updated throughout the 2012 Session!

DaleSig

Healthcare — Meaningful Use $$ Medicaid

Filed under: Other Incentives
December 29, 2011

For physician practices that have Medicaid patients, we talked with Don Betts, Georgia Tech, who is a service delivery partner with GA-HITREC (click here). Don specializes in assisting physician practices in achieving Meaningful Use, and here is an overview of what he had to say regarding Medicaid’s Meaningful Use:

Healthcare providers can receive a maximum of $63,750 from Medicaid over a six year period. Eligible Professional (EP) means more provider types than the Medicare incentive – in addition to physicians, it includesnurse practitioners, midwives, dentists and physician assistants at a Federally Qualified Health Center (FQHC). The incentive is based on using a certified Electronic Health Record (EHR) in a defined Meaningful Use way. The Meaningful Use requirements will be phased in over 3 stages and several years, with Stage 1 having started in 2011. Medicaid is making it easier to receive the incentive for 2011 and 2012. EPs don’t have to meet Stage 1 requirements but merely show that they have adopted, implemented, or upgraded to a certified EHR. Here are some takeaways for Medicaid Stage 1 (2011 and 2012):

  • How much $$: Each EP that has a minimum of 30% Medicaid patient encounters (20% for Pediatricians) can receive $21,250 in year one. For example, if there are 5 EPs in the practice, then there may be up to $106,250 (5 x $21,250) of incentives for year 1. Each EP’s patient volume needs to be reviewed to determine if there is potential. They can also qualify as a group.
  • Who gets paid: Similar to Medicare, payments are made to the individual EP (his or her SSN) or to the physician practice (the practice’s TIN number). The EP may reassign the incentive $ to the physician practice.
  • How to get paid: To get paid for year 1, each EP has to register with CMS, then “attest” with DCH by showing proof of the EHR upgrade and completing a volume calculator.
  • State of Georgia: The Georgia Department of Community Health (DCH) administers the meaningful use program (click here ).
  • HIPAA: don’t forget to review the new privacy and security requirements.

One final note – many physician practices have already qualified for Stage 1 and have received their checks. This is real money flowing to the practices (for details, click here ). If your client has potential, make sure they can benefit!

JimSig

Quick Update

Filed under: Investment Tax Credit,Job Tax Credit
December 29, 2011

The Georgia Department of Community Affairs (DCA) has just released the 2012 Tier Rankings (click here) used for Job and Investment Credits.