Tax Credits and Incentives Increase Tax Savings

Don’t miss out on tax credits that you’re eligible for. Taking advantage of the specific tax savings opportunities available to you is a smart business strategy. And knowing how to effectively maximize the value of those tax credits and incentives is crucial.

From research and development (R&D) credits to incentives for investing in new businesses, there are hundreds of opportunities each with its own set of requirements. While some credits are applicable to all taxpayers, there are others that are targeted at specific industries for actions such as restoring a historic building. Federal and state credits are the most prevalent, but local areas may also provide incentives and credits. Some, called refundable credits, even pay cash directly back to the business. Do you know which of your company’s activities qualify? There may be a world of possibilities available to you.

SOLVING BUSINESS ISSUES

“PBMares had a broad set of capabilities to help our startup grow. Not only did PBMares help us quickly prepare our returns, but they identified state and federal tax credits and helped us secure Federal R&D tax credits and state tax credits for our investors. It’s great to know that while our startup team is focused on the day-to-day tasks of building and selling products, the PBMares team is looking out for all of our tax and accounting needs – even spotting opportunities we were not aware of.”

Gerard Elderling, President, INNOVATETECH VENTURES, LLC

Business leaders trust PBMares to help them identify and maximize the value of the tax credits and incentives specific to their situation.

PBMares understands how valuable these credits and incentives are to your business and has decades of experience helping clients benefit from them. Our professionals have studied the opportunities available and monitored the frequent changes, guiding clients through the process of qualifying and complying with each one and providing the required certifications to claim them.

The knowledgeable tax credit and incentive specialists at PBMares assist with all federal credits and incentives as well as state opportunities for businesses in Virginia and Maryland. PBMares also helps find buyers for credits that have already been generated – a service few firms can offer. Our experience covers a large range of tax credits and incentives, including but not limited to:

Research & Development Tax Credits

Federal and state research and development (R&D) tax credits are available to companies in a number of industries who have invested time, money and resources in improving their products and processes. Companies of all sizes may be able to take advantage of these credits. The following list names some qualifying industries:

Biological sciences
Computer science
Engineering
Manufacturing processes
Physical sciences
Software development

Cost Segregation Studies

The costs for most buildings are depreciated over 27.5 or 39 years. 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 five, seven and 15-years. The tax savings that result can be significant. Our professionals have the expertise to get 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. PBMares professionals can help you identify and take advantage of any credits for which you are eligible.

Enterprise Zone Incentives

Most states earmark certain geographic areas for economic expansion. Businesses that operate within the zone are eligible for grants and incentives for certain activities like job creation and for tax incentives for things like property tax. Each Enterprise Zone is different, and it is often difficult to keep track of the rules. Our professionals use their knowledge about these credits and incentives to help you plan your business’ growth—and to ensure you claim them on your tax returns.

FICA Tip Credit for Restaurants

Restaurant owners are required to pay FICA taxes on the tips and gratuities their employees earn. However, the employer is entitled to claim a tax credit for part of the payroll taxes paid on employees’ tips by employers. PBMares experts can help you take maximum advantage of this credit.

Historic Preservation and Rehabilitation

Federal and State Historic Preservation Tax Incentive Programs are available for most income-producing properties listed in the National Register of Historic Places. PBMares experts can help you plan your eligible project in a way that will maximize your profit and minimize your risk.

Jobs Creation Credits

The federal government, states and municipalities all are aware of the impact job creation has on their economies. That is why many of them offer tax credits for job creation, often for specific categories of hirees, such as disabled veterans. Our experts can help you identify the credit you are eligible for and work with you to fill out the requisite paperwork.

Land Preservation Credits

In certain states, taxpayers can make a charitable contribution of land and deduct the contribution on their federal tax return and receive a tax credit from the state. Such donations must benefit the public and be made in conjunction with a land trust or government agency. The rules surrounding these credits are complex, and require the input of someone with expertise in tax credits and deductions. Our team can help.

Qualified Equity and Subordinated Debt Credits

This Virginia program is designed to incentivize investment by individuals in Virginia businesses that work in advanced technology fields. The credit can be a significant percentage of the investment, but strict guidelines must be followed. Our specialists can guide you through the required certifications.

Real Estate Redevelopment

Real estate redevelopment encompasses a wide range of projects for which a number of tax credits and incentives are available. Our real estate and state and local tax experts work with you to identify the credits available for your projects and make sure you are in compliance with the myriad of rules and regulations each credit requires.

Want to Know if You Qualify for a Credit or Incentive?

We have helped businesses throughout the region evaluate, calculate and submit for credits and incentives available. Businesses from nearly every industry have entrusted us to this process including those in construction, government contracting, municipal government, financial institutions and hospitality.