Wednesday, September 18, 2013

Extra Credit: Save Your Business Money With Tax Incentives




 

 ATLANTA, GA (Sept. 18, 2013) – With the increase in tax rates this past January, reducing tax burdens is more important than ever to both businesses and individuals. Interestingly, most people can save a lot of money with the help of tax credits regardless of the size of the tax liability or type of taxpayer.

David McMillian
 That was the consensus on the most recent episode of the “Commercial Real Estate Show” radio program, hosted by Michael Bull of Bull Realty. Bull and his guests David McMillian, president of McMillian & Associates, and Ricky Novak, CEO of Strategic 1031 Exchange Advisors, discussed tax credits and the importance of finding out what tax incentives are available for personal, business and real estate ventures.

 Tax credits for film companies are a growing trend that several states, including Georgia, North Carolina, Louisiana and Michigan, have embraced.

 “There’s been a tremendous push in Hollywood to build relationships in jurisdictions that are willing to give tax incentives,” Novak said. Atlanta, in particular, has been a hotbed for film production. Warner Bros. recently filmed “Fast & Furious 7” in the city and received a 30 percent tax credit, Novak said.

Ricky B. Novak
 Since Warner Bros. has no income tax liability in Georgia, the company is allowed to sell credits to local business owners or individual taxpayers.

 “You not only have the economic incentive of bringing those dollars to the state, but now you have a credit that can ultimately be sold back to taxpayers, to offset their income tax liability,” Novak said.

 Buying credits is one way businesses can grow their bottom line. The cost of purchasing a tax credit depends largely on the risk involved with the credit, Novak said. Guaranteed tax credits can trade as high as 90 cents on the dollar. Credits that carry more risk usually sell for a lower price, between 60 and 70 cents on the dollar.

Businesses should be mindful of how their practices and initiatives might yield tax advantages, McMillian said. 

“Companies at every level should look at what they can earn and normal activities they do that have the potential to create tax credit opportunities,” he added. States often offer credits for things such as adopting new software technology, developing new products and buying equipment.

 Business owners can earn tax credits for job creation, which are available at both the state and federal levels. “Georgia has seven different types of job-creation tax credits,” McMillian added. “If you are creating jobs, there’s usually an incentive no matter where you are.”

Federal tax incentives for hiring certain kinds of employees also are available. For example, companies hiring veterans or people in government assistance programs are eligible for tax credits, McMillian said.

 If you are interested in utilizing tax credits, the most important step is to do some research on the tax credits that suit you and engage a professional.

 “In some instances, whether it’s a state or federal benefit, the paperwork and processes are easy to follow, but that’s typically not the case,” Novak added.

Michael Bull
 “What you find is that generally whoever created the incentive makes it overly cumbersome to access that benefit so it’s important for taxpayers to work with experts to make sure they get the process right.”

 The entire show on tax credits is available for download at www.CREshow.com. The next “Commercial Real Estate Show” will be available on Sept. 19 and will feature REIS’ view on real estate.

For a complete copy of the company’s news releases, please contact:

Stephen Ursery
The Wilbert Group
404.405.2354

   

No comments:

Post a Comment