Reduce tax liability and increase cash flow.
Federal, state, local and non-U.S. governments offer myriad incentives to encourage job creation, investment and other business activity. Government agencies often create tax incentives to target desirable industries or activities they wish to develop, such as manufacturing or research and development. It’s also common for states to offer tax credits to promote growth in undeveloped areas. Some forms of investment may even be exempt from sales or property tax.
Taxes represent a significant business cost, and tax credits, incentives and exemptions are important tools for reducing costs and improving operating margins. Even businesses with no income tax liability may be able to benefit through refundable or transferrable tax credits to realize immediate cash benefits.
While tax credits are available to most businesses that meet the program’s criteria, incentive programs are discretionary and may be available through a negotiation process for companies that are creating new jobs and making capital investments. Common incentive programs include cash grants, withholding tax rebates and property tax abatement.
Loftis CPA has an integrated multidisciplinary team comprised of tax and industry professionals from across the globe. We have strong relationships with economic development officials and tax agencies in multiple jurisdictions that work with us during the tax credit and incentives process. We take a holistic and technology-enabled approach to help you identify, negotiate and secure tax credits and incentives—including retroactive and future opportunities—to minimize your total tax liability and increase business cash flow.
Tax credits and business incentives can be awarded in numerous forms, including for activity related to:
- Capital investments
- Employee investments
- Expansion and site selection via negotiated incentives
- Research and development
- Sales and manufacturing
- Sustainability and green energy