Benefits of Obtaining Tax Credits

Tax credits can really benefit your clients and your relationships with them. As you explore tax credit opportunities for your clients, don’t forget these direct and relational benefits. Here are several benefits to consider:
  • Money back to re-invest – The savings your clients realize from tax credits can be re-invested in their businesses. Where else can they get a better return on investment?
  • Reduced fees – By evaluating tax credit potential early, you may be able to reduce your total time and fees to the client (such as amending corporate and equity owners’ tax returns). On top of that, advanced planning helps you avoid missed tax credit opportunities, since many state tax credits require applying before the tax credit activity starts (such as adding jobs in Tennessee).
  • Reduced risks – You can reduce the risk of your clients’ leaving by adding tax credits to your offerings. In addition, bringing in outside providers to be a part of your “full service” offering can quickly add to your competitive advantage.
  • Strengthen your firm’s knowledge base – Each time a client utilizes a tax credit, your firm’s knowledge base grows. You will increase your understanding of the tax credit’s qualifying activities, potential $$, and resource requirements.
  • Start now – Find an “Early Adopter” client and walk through the steps together. Tap into these clients to explore, learn and keep up with tax credits, and remember to start sooner rather than later.

So remember — tax credits benefit your clients AND your practice. If your clients say they want to investigate tax credit potential, or even if they don’t — you need to get proactive and research tax databases, talk with outside providers, and tap other resources that can help get you started now!