Tax Credits – Business & Individual
There are various IRS and State tax credits available to businesses, depending on which field of business you are in.
IRS and State tax credits can be a substantial piece of lowering your taxes.
If your business is hiring new employees and if your employees meet certain criteria, you may qualify for a credit equal to 40% of an eligible employee’s qualified wages, up to a statutory maximum.
If you are in a business where your employee receives tips as part of their wages, you may be eligible to claim a tip credit. The difference between an employee’s federal minimum wage and cash wage would be your tip credit.
Many electric vehicles can qualify for the Plug in Electric Drive Vehicle credit. Depending on which vehicle you purchase, the credit may be as high as 7,500.
A crucial tax credit to companies engaged in activities to improve or develop processes, software, techniques, or formulas are eligible for the Research and Development credit. This credit provides a dollar-for-dollar cash savings on money spent on qualified domestic expenses, such as wages, supplies, and contract research expenses.