Can taxes be exciting? At the WMEP Manufacturing Matters! Conference, WIPFLI’s Rob Kane hosted Top 7 Tax Strategies defining opportunities for small business tax incentives that may be under your radar. Here were my top 4 discussed:
- R&D Tax Credits: The R&D Tax credit supports businesses pursuing research including designing new products and new processes. This is not just white coat lab research. Rob expanded our definition of research and workers that are allowable to claim this business credit. In many cases, a business may go back 3 years to claim the credit. Despite the chaos in using the R&D Tax credit for 2023, this is a program you should ask your tax consultant about and put in the processes that help you claim the credit during tax season.
- Hiring and payroll incentives: Some tax credits require your business to have existing process to claim the credit at the end of the year. Rob discussed hiring and payroll incentives that enable a business to claim up to $9600 per hire based on minimum hours. The challenge is that you must file paperwork within 28 days of the employees start date. Working with your tax consultant, you can establish these processes to help your business into 2024.
- Employee Retention Credit (ERC): Established in March 202, this credit helps businesses retain people allowing up to $7000/employee. Claiming this tax credit is based on quarterly/annual earnings. Rob indicated there may be a sunset date for this program, but it never hurts to ask.
- State and Local Tax credits: Rob highlighted tax savings for energy efficiency. These often require a utility study. However, the effort may help businesses save tax on utility bills.
I walked away excited to consider taxes. However, if you don’t know what to ask, you may be missing out on opportunities. Rob invited people to get his PowerPoint by emailing .
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