Category: WOTC

Tax Credits Can Lead to Other Incentives

Many times a known tax credit can lead you to find more incentives for your client! These could include additional income tax credits, payroll tax credits, sales tax exemptions, property tax abatements, and non-tax cost reductions. For example, a manufacturing company utilized Federal and Georgia R&D tax credits for a new manufacturing process. This new manufacturing process will be moved from the client’s research area to their manufacturing area. Incentive activities for this move can potentially include:
  • Assets purchased (i.e., land, buildings and equipment): Georgia Investment Tax Credit, cost segregation study, Section 179, federal and state energy incentives, Georgia sales tax exemption for supplies/energy, and other incentives
  • New employees hired: Georgia Job Tax Credit and Federal Work Opportunity Tax Credit.
  • Existing employees trained: Georgia Retraining Tax Credit.
  • If this move includes a major expansion or new location: other state and local incentives may be available.
  • Other incentives: Some locations have non-tax related incentives such as the Tennessee Valley Authority for electric power cost reduction for employee head count increases (click here).

So remember — if your client is utilizing a tax credit, ask more questions to flesh out the details of the activities related to the tax credit.  And these activities can lead to more incentives today and tomorrow.