There are over 2,000 state credit programs made available to businesses. Many state credits are a “piggyback” to federal programs like WOTC which allows multiple qualifying categories. Those programs have been popping up in the last few years because of the economy to help reduce unemployment.
In today’s article, we worked with John Polizzano, Director-State Credits to compile a list of the most important facts about state tax credits that your company should know about.
In later posts, John will take a deeper dive into some of these topics for your company’s benefit:
- Some programs need pre-certification and others don’t.
- Some programs are targeted by industry, location, and by type of individual hired.
- Some programs are refundable if you can’t utilize the credit in the year it is earned.
- It can be difficult to administer a program because there are so many.
- It’s hard for a company to focus on these programs especially if their company is nationwide and have multiple locations. John says that’s why it’s important to seek the advice of a specialist whose primary focus is state tax credit programs and can administer on a company’s behalf.
- Programs can change from year to year, even for companies that are limited in their geographic reach.
- Some of the programs are very labor intensive to attain qualification. That’s another reason to seek professional consultants to administer a complete tax credit program and obtain the maximum amount of state tax credit dollars.
If you would like to talk to John to learn more about how state tax credit programs can benefit your company, contact John at JPolizzano@taxbreakcredits.com