More than 5.3 million applications were filed for new businesses in the United States in 2021.
Last year, these business owners faced their first year of tax season, and many of them didn’t get the deductions they deserved. If you run a company, learning about the different tax credit options could save you thousands of dollars.
Read below to discover the most beneficial business tax credits that will support your company and team!
Research & Development Tax Credit
One of the most overlooked business tax credits is for research and development.
The U.S. has created this tax program that offers dollar-for-dollar reductions in tax liabilities. The goal of this credit is to protect American workers from job outsourcing. By researching and developing new investments, this credit has been able to continue since it began in 1981.
Machinists, designers, and operators are typically eligible for this tax credit. You can also apply if your business is updating its product line or developing new software.
Employee Retention Credit
If you’re looking for tax credits that will help you recover from the COVID pandemic, employee retention credits could help.
Tax-exempt businesses that have one or more full-time employees can qualify for this relief. To receive this tax break, you need to prove that your company suffered because of the pandemic. Decreased revenue or supply chain issues apply to these tax credit options.
You can apply for the EMPLOYEE RETENTION TAX CREDIT if you haven’t already gotten a deduction.
Federal Solar Tax Credits
Depending on your location, you may qualify for solar tax credits, created by the US government.
The investment tax credit can help your company earn back a percentage of the cost of a solar system. As long as you apply for the tax credit in the same year it was installed, you can get reimbursed some of your money.
The production tax credit is based on how many kWh you generate with your solar panels. The government is trying to encourage businesses to go green, and if you make the switch, you’ll quickly save money and benefit the environment.
Health Coverage Tax Credit
Healthcare insurance payments are expensive, which is why the government has created a tax credit to help business owners.
If you want to reduce your monthly bills for insurance premiums, you need to apply for this credit. Income estimates and business info will determine how much you can get in return for the company and on an individual basis for staff.
Take Advantage of Business Tax Credits
Tax payments and fees can quickly add up when you’re running a business.
Learning about the business tax credits above can help you identify which ones you qualify for. Financial relief comes in many forms and deductions are one of the most practical ways to save money. Don’t worry about sending in applications and researching other opportunities to save money.
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