Tax credits are about more than saving money. They are a strategic tool to improve cash flow and drive business growth.
Cash flow is the lifeline of business operations. Tax credits boost cash flow, enhancing your company’s financial statement and providing sustainable growth.
Tax credits are powerful financial tools. They reduce your company’s tax bill dollar for dollar. Therefore, more cash stays within your company, strengthening its economic stability and supporting growth.
Using these tax credits can improve cash flow and business growth.
Work Opportunity Tax Credit
The Work Opportunity Tax Credit (WOTC) rewards companies hiring individuals from target groups, including veterans, individuals from low-income areas, and long-term unemployment recipients. The employee’s background impacts the percentage of their wages you can claim as a tax credit during the first year of employment.
The WOTC can be especially valuable for expanding your team and reducing tax liability. Find new hires who meet the eligibility requirements, have them certified, and maintain detailed hiring and payroll records to support the credit.
Empowerment Zone Employment Credit
Another opportunity for improving cash flow is available to businesses located within federally designated Empowerment Zones. These areas are designed to promote economic development in underserved communities, and employers operating within them may be eligible for a federal tax credit when they hire local residents.
If your business and qualifying employees meet the requirements, this credit can reduce your tax liability and return thousands of dollars to your bottom line. Like the WOTC, this program supports inclusive hiring and offers a dollar-for-dollar credit, keeping more cash in your business and supporting long-term growth.
To ensure compliance and maximize this credit, accurate documentation and location verification are key.
Industry-Specific Tax Credits
Renewable energy, manufacturing, technology, and other industries benefit from customized tax credits encouraging sector growth, sustainability, and innovation. The credits reward energy efficiency improvements, eco-friendly initiatives, technological advances, and related activities.
Industry-specific tax credits emphasize qualifying activities such as upgrading to energy-efficient equipment or investing in new technologies. Research and understand the incentives in your industry and maintain compliance with the requirements to maximize these opportunities, boost cash flow, and improve business growth.
Work with an Experienced Tax Credit Processing Firm
Partnering with MJA & Associates can help your company uncover tax credits, directly impact the bottom line, and free up resources for expansion and innovation. Contact us today to learn how we make the process easy and effective.
