In the business world, you have to spend money to make money. Part of that spending money portion of doing business comes in the form of paying your taxes. It can become a large expense if you aren’t taking advantage of all the tax credits that are available to you. Some business owners aren’t aware of the credits out there and are leaving money on the table that is rightfully theirs. Mark Dicus & Company is here to talk about different tax credits that can help reduce the amount of taxes that businesses have to pay.
Understanding Tax Credits
It is important that business owners understand what tax credits are and how they work. There are tax deductions and then there are tax credits. They are two different things and benefit business owners in different ways. Tax deductions help to lower your taxable income, while tax credits will lower the amount of money you owe the government dollar for dollar. If you owed the government $3,000 and you had tax credits that equaled $3,000 it would cancel out all of the money that you owe. Here are some tax credits that are available for qualifying businesses:
– Research & Development Tax Credit: If the company you own specializes in research and innovation, you may qualify for this tax credit. You have to be improving processes and making investments into this type of research to qualify. This includes even small startup businesses.
– Work Opportunity Tax Credit: There are certain target groups including veterans, those with disabilities, ex-felons and others that can help you qualify for this tax credit when you are providing them with work opportunities. It is there to encourage business owners to give these individuals a shot.
– Disable Access Credit: If you are working to make the building where you do business more accessible for those that have disabilities, you will likely qualify for this tax credit that covers up to half the cost of the upgrade.
– Energy Efficiency Tax Credit: There is an overarching focus on making the world we live in more energy efficient and sustainable. Businesses that are taking steps to be more energy efficient in the way that they do business could qualify for this tax credit the government has in place to encourage efficiency. It can include things like solar panels, energy efficient heating and cooling, electric vehicle charging stations and more.
Tax Preparation, Filing, Planning & More in Salt Lake City, St. George, West Valley City, Provo, Orem, West Jordan & Greater Cedar City, Utah
As a business owner, you should be looking for every opportunity out there to save money and increase your revenue. Avoiding taxes that you shouldn’t have to pay because you qualify for these tax credits is one of them. At Mark Dicus & Company, we work to help businesses claim all the credits that they qualify for. We are here to help you succeed and grow as a business. Whether you turn to us for bookkeeping, tax preparation, and accounting services, we can help you find success. Call us today!