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Fact or Fiction? The Truth About Research & Development Tax Credits

Fact or Fiction? The Truth About Research & Development Tax Credits

Among the many tax credits and incentives the federal government provides to U.S. businesses, the research and development (“R&D”) tax credit remains largely overlooked and underutilized, meaning companies may be missing out on claiming up to thousands of dollars of credits. And probably for good reason. The phrases “research and development” and “R&D” usually bring images of lab coats and microscopes to mind. However, the federal R&D tax credit laws define “research and development” so that it can take on a much broader meaning. In fact, you may now be able to recover a significant return on your investments that involve the improvement or development of manufacturing processes, software, products, techniques, and formulas. Join us on September 28th with other business owners, HR leaders and finance execs like yourself and get the facts behind R&D tax credits, including critical insights and best practices on how companies like yours can get the tax credits for which you are eligible, so that you can have a stronger balance sheet. What You...

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ADP Legislative Update: New House Bill Could Make WOTC Permanent

ADP Legislative Update: New House Bill Could Make WOTC Permanent

On August 11, 2017, House of Representatives (H.R.) Bill 3652 was introduced and, if passed, would amend the Internal Revenue Code to make the Work Opportunity Tax Credit (WOTC) permanent for qualified new hires who begin work after December 31, 2019. What you need to know: The Bill has officially moved to the House Ways & Means Committee for consideration. With processes to reform the tax code scheduled to begin in September, the Ways & Means Committee may be delayed in considering H.R. Bill 3652. The Congressional Joint Committee on Taxation (JCT) will need to score this legislation and estimate its cost over a 10 year period—it’s unlikely we’d see a vote without this information. Other ways to stay informed: Follow this bill at: https://www.congress.gov/bill/115th-congress/house-bill/3652 Read more about WOTCs here: Cost Reduction Opportunities Using Tax Credits: The Financial Advantage Learn more about opportunities for tax credits savings at: Maximize Your Employment Tax Credits and WOTC Share this:Click to email (Opens in new window)Click to share on Twitter (Opens in...

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Georgia Revamps Quality Jobs Tax Credit Program

Georgia Revamps Quality Jobs Tax Credit Program

With the enactment of House Bill 265, the State of Georgia has passed two significant changes to its Quality Jobs Tax Credit program, effective with tax years beginning on or after January 1, 2017. These changes are: Increasing the hiring period for meeting the job increase threshold, and Implementing a new investment requirement in order to be eligible for subsequent job creation periods. Prior to HB 265, Georgia law required that a taxpayer must create at least 50 new quality jobs within one year of when the employer first began withholding taxes in Georgia in order to be eligible for the Quality Jobs Tax Credit.1 Effective for tax years beginning on or after January 1, 2017, a taxpayer will now have two years in order to meet the 50 quality jobs requirement if the taxpayer first withholds taxes in Georgia after January 1, 2017. HB 265 also enacted a new investment requirement in order for taxpayers to be eligible for the extended two year job creation periods. Effective for...

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2016 Tax Credits and Incentives Following Year-End Legislation

2016 Tax Credits and Incentives Following Year-End Legislation

U.S.-based businesses could have a major opportunity to benefit from tax credits following year-end legislation. The Omnibus Spending Bill H.R. 2029 and the PATH Act (Protecting Americans from Tax Hikes Act of 2015), signed into law at the end of 2015, include the extension of more than 50 tax credits and incentive programs that expired on Dec. 31, 2014. This includes an array of federal tax credits that offer incentives to employers who implement various hiring, training and investing practices. Work Opportunity Tax Credit (WOTC) – Extended for five years through 2019, WOTC is designed to encourage employers to hire and retain individuals from various target groups, including veterans of war, welfare recipients and the newly added “long-term unemployed” category, among others. Through this program, businesses can qualify for a tax credit of up to $9,600 per eligible employee for the first year of employment. Federal Empowerment Zone Employment Credit – Businesses that hire employees who live and work in an empowerment zone, which are designated distressed urban and...

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