Across the U.S., many businesses are facing cash flow challenges that are hard to tackle. This has discouraged other potential investors from initiating start-ups or investing in the stock market.
But in this bleak situation, cost segregation experts continue to improve cash flows and gain reinvestment benefits.
In this blog, we’ve compiled some tax incentives and credits that benefit U.S. businesses.
1. Work Opportunity Tax Credit (WOTC)
The federal Work Opportunity Tax Credit (WOTC) allows a company to hire people from specific backgrounds, compensating the company in return. Such people usually face significant barriers to employment. This type of tax incentive is based on three factors:
- The hired worker category
- Working hours
- Salaries paid to these workers during the first year
The government encourages these people to become self-reliant and self-sufficient through this incentive. For more information about who qualifies and performs WOTC, visit our website.
2. Long-Term Asset Incentives
For real estate business owners, the commercial property’s accurate classification is essential for saving and deferring federal taxes.
Cost segregation allows a company to reassess its tangible assets and take advantage of the maximum depreciation deduction permitted under the federal tax law. This increment in non-cash expenses increases the company’s cash flows and reduces the income taxes substantially.
3. Bonus Depreciation 100%
After several amendments, the 100% bonus depreciation reform allows an acquired or serviced commercial property purchased after 2017 to qualify for the first year write-offs.
Bonus depreciation deducts the depreciation charges immediately than expensing it out in several years, increasing the cash flows. It encourages small businesses and start-ups to boost the economy. Properties that have a useful life of over 20 years are eligible for this tax incentive, according to the Internal Revenue Service (IRS).
4. R&D Tax Credit
Many companies don’t notice the powerful incentives R&D tax offers. They struggle to survive the competition, and black swans overlook the opportunities offered by the federal government.
The R&D tax credit is an incentive given to companies to develop or design a new product or bring any technological improvement to an existing product. This tax credit has expanded its scope to businesses operating in research, artificial intelligence, and 3D models today. If your business spends significantly on research and innovation, it’s the right time to contact our consultants to claim this credit.
Improve Your Business Value Today!
If you’re looking to increase your cash flows and improve the business’s worth, you’ve come to the right place. The Darson Group offers specialized consultation services for cost segregation, R&D tax credit, and WOTC credit incentive.