What State Tax Credits and Incentives Can My Company Use?
State Tax Credit Programs
There are many state and local tax credit programs available, and identifying and securing the specific credits or incentives applicable to your unique situation can be complicated.
Tax credits can reduce the tax amount you owe to state governments and encourage economic development, job creation, investment, and other activities that benefit the state’s economy. Likewise, negotiated incentives can increase your return on investment. Cherry Bekaert offers a comprehensive review to help determine how you can take advantage of these tax benefits.
Tax credits are statutory, low-risk opportunities that can often be overlooked and are income tax benefits that may lower a company’s overall effective tax rate. At Cherry Bekaert, our professionals have deep technical knowledge and extensive experience working with state and local program administrators, and can identify the full spectrum of in-depth state credits and incentives and additional tax services available for your company.
What are the Benefits of Claiming State Tax Credits and Incentives?
The State Credit & Incentive Review process helps you identify opportunities for:
- Relevant and Applicable State Credits
- Refundable or Transferable Credits
- Location-based Credits
- Potential Grants, Tax Abatements, Tax Exemptions or Tax Refunds and Rebates
- Training Benefits
- Infrastructure or Free Land Assistance
- Research & Development Tax Credits
- Sales and Use Tax Exemptions
- Operating Cost Reductions
About Our State Tax Credit Services
Available State Tax Credits and Incentives
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Statutory Credit Review
States offer tax credits for investment and employment related activities. These are often low-risk opportunities that are underutilized by companies. Most of these statutory credits can be claimed on a retroactive basis, which could result in a tax refund or a reduction in the company’s estimated tax payments. Certain credits may be refundable or transferable, and other credits may be carried back or carried forward for an indefinite period.
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Incentives Negotiations
State and local governments often offer financial and tax incentives to companies expanding or relocating to their jurisdictions. These incentives may include cash grants, property tax abatements, sales tax refunds, utility incentives, infrastructure assistance and training benefits. The benefits are received as the company meets the investment and employment commitments made with the taxing jurisdictions.
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Site Selection Services
For companies expanding, relocating, or consolidating anywhere in the US, we can assist with identifying potential sites through negotiating and securing financial and tax incentives. Our team is able to assist with a site selection analyzing breakdown of labor, real estate, cost of doing business in the area, available incentives, the tax and regulatory environment, utilities and infrastructure, and transportation.
By conducting a site selection strategy and location identification assessment for expansion we can help drive key business requirements, growth, and talent needs to maximize profitability, sustainability, and economic incentives.
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Employment Tax
Payroll is regularly the single largest expense businesses incur, but there are huge savings that can be found in payroll tax departments. Recovering overpaid taxes, complying with tax law requirements, and detecting potential issues before the Internal Revenue Service can positively impact your company’s bottom line.
Cherry Bekaert’s state and credit incentives team can work with human resource and payroll professionals to reduce risk and address critical issues as they occur. Our team is able to provide assistance with:
- Identifying, quantifying and recovering overpaid payroll taxes
- Complying with federal and state tax law requirements during mergers and acquisitions and restructurings
- Securing abatement of penalties for payroll-related assessments
Your team will work closely with our professionals to address payroll concerns before they develop into significant tax issues.
Who Can Benefit from State Tax Credits and Incentives?
- All Employers
- Multistate Taxpayers with Tax Liabilities
- Companies That Train Their Employees
- Companies Entering New Markets, Adding Production Lines
- Businesses Restructuring, Planning Expansions, Mergers or Consolidations
- Businesses With Significant Capital Expenditure Budgets or Recurring Annual Equipment Costs (Retooling)
- Companies with Real Estate Issues (i.e., Lease Expiration, Obsolete Factory, Considering Relocation)
- Companies Importing or Exporting Product Through State Ports
