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Demystifying Tax Credits for Small Business

Demystifying Tax Credits

There are four industries that matter most when it comes to research, development, and innovation. These are medical, manufacturing, energy, and technology industries. From more streamlined solutions to a greater emphasis on safety, these areas of business are constantly and rapidly expanding and evolving. This is primarily because these fields are crucial to the daily lives and livelihoods of Americans, and citizens around the world. 

Innovation and creativity are heavily encouraged among businesses involved in medicine, manufacturing, engineering, and technology. Because when companies in these sectors thrive, citizen lives get significantly more convenient. From nanotechnology in medicine to green hydrogen being utilized in the energy industry,  entrepreneurs use this progress to improve human lives and the environment around us. 

As advancements continue though, and small businesses involved with medicine, manufacturing, energy, and technology focus on advancing, staffing and overhead costs can easily become unmanageable. This is where government tax credits, rebates, and incentives can save these small businesses hundreds of thousands of dollars. 

Is Your Small Business Missing Out on This Opportunity?

Operating a small business in the medical, manufacturing, energy, and technology industries can be quite challenging. Not only is there a decently high overhead to worry about in companies like these, but staffing employees and coming up with new solutions carries its own set of challenges. This is why it’s quite disappointing to realize that fewer than 5% of businesses in these sectors ever attempt to take advantage of available rebates and tax incentives. In fact, of the small percentage of businesses that do claim available tax credits and incentives, more than 80% of them are billion-dollar companies. 

Small businesses who take advantage of tax credits and rebates are granted an improved ability to focus on conducting research and running their business, instead of worrying about funding and finances. They can also enjoy a much lower tax rate, and greatly improve their market value for years to come. Ensuring a small business qualifies for these incentives is so much more than cash from the IRS. It can benefit a company for years into the future.

Ways to Earn Available Tax Credits

There are a number of qualified activities that you can involve your small business with to help lower your tax liability and earn money back into the bank. Businesses can earn credits for all sorts of different activities too, like the way they treat their employees or how they care for the environment. 

Helping your small business qualify for earned incentives doesn’t have to be confusing or challenging either. There are three simple ways you can start today, including to:

  1. Involve Your Small Business with Research Now

R&D tax credits and incentives are some of the best for small businesses to take advantage of. Businesses in the medical industry might consider designing a new product, while one in the energy field could generate a new approach. The more involved your small business is with research, innovation, and development, the more you will qualify for. 

  1. Utilize Engineering or Technology to Improve Safety

Utilizing technology to facilitate growth and further advancement is one of the best ways for small businesses to qualify for government tax credits. By utilizing new and innovative approaches for common problems, your business could be responsible for improving outcomes around the world. 

Should I Work with a Professional?

While navigating tax credits and incentives as a small business doesn’t have to be a complicated process, it can still be one that requires some understanding and experience. To earn the most money back, and ensure that your small business is taking advantage of all rebates you might be entitled to, working with an experienced professional is the best course of action. Tax professionals with credit experience, especially relating to small businesses in the medial, manufacturing, energy, and technology sectors, know all there is to know about navigating tax credits and incentives. With many different cost-reduction strategies, and years of expertise, a professional from Project Blue can help any small business earn more money than they could have imagined.

Patrick S. Harris runs a financial and professional services company in San Francisco serving clients nationwide. Patrick can be reached directly at 415.691.7215; patrick@psharrisco-com