WOTC

WOTC is a federal tax credit administered by the IRS that provides financial incentives to employers who hire individuals from target groups, including veterans, designated community residents, and long-term unemployed individuals. The credit can amount up to $9,600 per new hire in tax savings.

ERC

Employee Retention Tax Credits provide businesses with fewer than 500 employees a tax break if they keep their employees on the payroll during times of economic or public health crisis. Eligible employers may receive a tax credit of up to 50 percent of up to $10,000 in wages and health benefits for any employee between March 12, 2020, and January 1, 2021. This credit is applied against their payroll tax liabilities reported on quarterly returns.

ENERGY

Energy tax credits are a type of incentive offered to individuals who invest in renewable energy sources. Depending on the policy of the local jurisdiction they are offered in, they may apply retroactively or to the current calendar year. Commonly, they cover investments such as solar panels, energy-efficient home upgrades, renewable energy sources, or home insulation.

R&D

The US federal government offers R&D tax credits to corporations and individuals conducting research and development activities in the United States. These credits are intended to reward investments in innovation and research and are applicable to all industries. Companies can claim the credit amount against their income tax or payroll taxes, provided their project meets specific criteria set by the Internal Revenue Service, which include four components: experimentation, technological in nature, process of experimentation, and risk of failure.

COST SEGREGATION

The Tax Cuts and Jobs Act of 2017 has introduced a real estate cost segregation tax credit that allows property owners to be more tax-efficient when writing off the costs of acquiring, constructing, or improving their properties. This credit allows for a larger portion of the building's cost to be written off in a shorter period of time, thus reducing taxes. This credit applies to buildings placed in service after December 31, 2017.

 

 

Frequently Asked Questions about TAX CREDITS