Extended Credits Help Lessen Business Taxes
As a business owner filing taxes in 2015, you’ll want to consider taking advantage of federal tax breaks that earn extended credits. Credits like the two mentioned below can help reduce taxes dollar-for-dollar instead of deductions which only reduce the amount of income that’s taxed.
The Research credit
- AKA “research and development” or “research and experimentation” credit
- Rewards businesses that increase their research investments
- Credit is generally equal to a portion of qualified research expenses
- Complicated to calculate
- Savings can be substantial
- Now a permanent tax credit
The Work Opportunity credit
- Available if you hire those considered disadvantaged, like ex-felons, veterans unemployed for four weeks or more, and those receiving food assistance
- Extended through 2019
- Maximum credit ranges from $2,400 for most, up to $9,600 for disabled veterans unemployed for six months or more
- To learn more about what other individuals you hire may qualify for this credit, visit the U.S. Department of Labor website.
The Protecting Americans from Tax Hikes Act of 2015 (PATH Act) added a long list of various tax breaks and some are here to stay. Contact PBMares so we can help you decide if you should take advantage of extended credits or deductions, and which tax breaks are better for you.