Determining the appropriate tax credits to pursue and navigating the claims process can be a complex process. Our professionals can provide guidance and assist you with claiming tax credits because your time is better focused on growing your business.
COVID‐19 Relief and Payroll Credits
If your business became inoperable during the COVID-19 pandemic or sustained damage from a hurricane, wildfire, or other qualified event, you may qualify for disaster relief tax credits.
Employee Retention Tax Credit (ERTC)If you retained employees during the COVID-19 pandemic, you may be eligible for a tax credit worth up to:
- $5,000 per eligible employee during 2020; and
- $21,000 per eligible employee during 2021.
You may qualify for the ERTC if your business had:
- Fully or partially suspended operations due to a qualifying government order; or
- Had a measurable reduction in gross receipts.
Subsequent legislation also granted Paycheck Protection Program (PPP) loan recipients’ eligibility to claim the ERTC to the extent the wages weren’t paid using PPP funds.
Additional Relief Credit Eligibility
Your business may qualify for additional disaster relief tax credits under the following criteria:
- Located in a designated disaster zone not including COVID-19 disaster zones;
- Retained employees during a recovery period; or
- Had eligible wages paid to employees unable to perform services during a qualified disaster or relocated employees to alternate locations to resume their work.
Cost Segregation Studies
The costs for most residential buildings are depreciated over 27.5 years and 39 years for most commercial buildings. A cost segregation study is an analysis that allows building owners to separate out and accelerate depreciation deductions for certain electrical, mechanical and plumbing assets over 5, 7, and/or 15 years. The resulting tax savings may be significant. We have the expertise to help you obtain the maximum benefit from your cost segregation study.
Energy Efficient Incentives
There are a number of credits available for investments in energy efficient property including the credit for plug in electric drive motor vehicles and solar energy credits. We can help you identify and take advantage of any credits for which you are eligible.
Federal Hiring Credits
Work Opportunity Tax Credit
The Work Opportunity Tax Credit, or WOTC, is a general business credit that is available for wages paid to certain individuals and is equal to 40% of up to $6,000 of wages paid to, or incurred on behalf of, an individual who:
- Is in their first year of employment;
- Is certified as being a member of a targeted group; and
- Performs at least 400 hours of services for that employer.
Many states offer their own WOTC-equivalent opportunities. The amount of credit and the type of tax they offset varies by state.
FICA Tip Credit for Restaurants
Restaurant owners are required to pay FICA taxes on the tips and gratuities their employees earn. The employer is entitled to claim a tax credit for part of the payroll taxes paid on its employees’ tips. We can help you take maximum advantage of this credit.
R&D Tax Credit Services
R&D credits provide substantial savings to businesses that design, develop, or improve products, processes, techniques, formulas, or software.
Tax refunds may exceed 10% of annual R&D costs for federal credits and even higher when applying state level credits. Claiming credits can be a complicated process that involves intense IRS analysis and scrutiny, so it’s crucial to get qualified help to navigate through the submission process.