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Tax Preparation Service - Taxpayers investing in qualifying business investments are eligible for credits against their income taxes and franchise taxes. Any unused credits can be carried forward for up to 15 years. Businesses conducting research expenses in North Carolina may qualify for a tax credit for eligible expenses related to that research project, including design; construction; installation of equipment; and other expenses incurred as part of it.

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The Work Opportunity Tax Credit is a federal credit designed to reward employers who hire employees from certain targeted groups that face barriers to employment. This credit can help businesses save millions of dollars in tax payments every year, boosting their bottom line and revenue growth. HR should screen candidates before submitting a WOTC questionnaire to their State workforce agency for consideration within 28 days after starting employment.

Typically, this program aims to assist ex-felons, veterans, SSI recipients and high risk youth who find employment difficult to secure. Employers can utilize carryback/carryforward rules in this program in order to make the most of it.

Notably, the Work Opportunity Tax Credit was recently extended until 2025 by the Consolidated Appropriations Act of 2021; however, its implementation has only just started and it is essential that companies stay abreast of any updates or modifications to the program as they arise. It is important that companies retain all documentation for at least five years to maximize the potential benefits.

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Local governments frequently utilize discretionary grants as an economic development strategy tool. North Carolina provides numerous discretionary grant programs such as the Job Development Investment Grant (JDIG) and One North Carolina Fund to aid this cause.

The JDIG program is a discretionary, performance-based incentive that offers cash grants based on a percentage of the personal income tax withholdings for new jobs created. High yield projects involving investments of $500 million and creating 1,750+ positions may qualify for up to 100% of personal income tax withholdings for up to 20 years!

These grants may be combined with county, state and workforce development incentives to maximize impact. Furthermore, Duke Energy provides an Economic Development Rider that gives qualifying companies access to discounted power rates over four years.

Statewide Business Link counselors are also able to assist businesses with licensing, government contracts, business plans, financial information, marketing, and sourcing capital. Not only can these counselors offer advice, they can connect business owners to experts throughout the state if needed.

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Credits may be applied against either corporate income tax or franchise tax liabilities of companies. Any unused credits may be carried forward up to 10 years.

C-corporations, S-corporations, partnerships, limited-liability companies, and any other pass-through entity are eligible to claim the credit in North Carolina. This credit can be claimed by the owners of a business that is taxed in a different state.

North Carolina offers various incentives to businesses that are looking to expand or relocate in exchange for jobs and investments. These include multi-year grants based upon projected personal income tax withholdings by new employees as well as grants via its One North Carolina Fund.

North Carolina stands out as an attractive state for business with its many programs and incentives provided by each county within the state. Each county can offer local investment and job incentive grants to further lower company costs; this county-specific support is one reason North Carolina has been consistently rated among the best states for doing business over time.

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Federal tax incentives are a major factor in the explosion of renewable energy projects, such as wind, bioenergy and solar. Production Tax Credits (PTC) allow project owners to reduce their income tax liability based on electricity production, while Investment Tax Credits (ITC) help companies reduce their business taxes based on the capital invested.

Companies manufacturing renewable energy equipment or establishing facilities in North Carolina may qualify for state tax credits and incentives that provide significant cost-cutting savings on qualifying systems. Both research and development tax credits combined offer substantial tax savings when applied towards qualifying systems.

Recent litigation against NC Department of Revenue raises questions about how state governments will deal with companies that use federal credits like ITC to offset tax liabilities. A North Carolina business judge recently sided Farm Bureau Mutual Insurance Co. against DOR in their case, overturning a state assessment of nearly $24 million against Farm Bureau Mutual for investing in solar projects syndicated through syndications. This has prompted other companies to notice its position on tax relief measures.

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To remain competitive, you need to find new ways to improve operations, processes and profits. While larger manufacturers are aware of federal tax incentives like the Research and Development Tax Credit, smaller businesses may not be taking full advantage.

R&D credits are a great way to lower a company's franchise or income tax liability. They can be applied towards either income taxes Have a peek here or franchise taxes. Any excess credit can be carried forward up to 15 years.

Companies with significant business presence in North Carolina, or those that operate here, may be eligible for the R&D tax credit. Qualifying expenses are defined as costs incurred to develop or improve products, processes, or software. Qualifying businesses must also meet certain criteria, such as being technology-focused and having an excellent record under the Occupational Safety & Health Act.

This credit can be applied against up to 50% of state income or franchise tax liabilities, less any applicable credits against that tax, for eligible small businesses. Furthermore, they can use it towards their alternative minimum tax (AMT) liability.