Generating state tax credits for your business is rarely a one-dimensional exercise. And generally speaking, many businesses often underutilize the types of credits that are actually available to them. The common misunderstanding is that incentives are solely based on “new” practices or developments alone. This simply isn’t true.
There are, in fact, a variety of ways to generate tax incentives according to individual state legislations…it just might take a closer look, a watchful eye for changes (business and legislative), and an expert’s evaluation. Is it worthwhile? You bet your bottom dollar it is!
A state tax evaluation can easily reveal whether you are considering every incentive that applies to your business. Especially if you are making any changes to your business.
There are ways to be creative with generating state tax credits for your business. For example, opening a new office in a different city or state can result in a sizable business incentive, without a huge capital investment required.
Additionally, it should never be assumed that your home state incentives are the same as all other states. It’s important to investigate programs and incentives in other states as well, as these are continuously changing. Program changes are especially active in “border war” states like Kansas and Missouri, as well as California and Arizona, as these states are competing to get businesses to relocate with business and property tax incentives. This is not uncommon across the United States.
While most states differ on their levels of incentives available (check the states you have business in, as well as the surrounding border states, for specific business incentives), there are a few key areas to monitor regularly for tax credit opportunities:
For questions or help with scouting the best in state tax incentives and advantages for your business, contact a K·Coe Isom state tax expert.