Federal and state tax credit and incentives (TCI) are a valuable way to reduce a company’s federal and state tax liability. WMS has over 35 years of identification, administration, and processing of federal and state statutory (“as of right”) and discretionary tax credits and incentives. Reduce federal and state tax liabilities through eligible activities associated with the geographic location of facilities and workforce retention, hiring, and training. Take advantage of such incentives as empowerment zone, Indian employment, and job creation tax credits. Companies often miss out on these tax credits due to the complexities of federal and state regulatory reporting, and ongoing monitoring that is required.
Opportunities include hire, wage, and geographic based tax credits. States offer training/retraining credits and grants, sellable/transferrable tax credit opportunities,
Federal TCI Opportunities
Federal Empowerment Zone
Take advantage of federal empowerment zone incentives, which provide employer tax credits, project facility bonds, and capital gain tax exemptions on cash investment earnings for being geographically located in targeted areas. These Incentives increase commercial activity, expand job opportunities, and promote regional vitality. WMS uses a straightforward one-step process to calculate your credits. The result: no intrusion, no paperwork, and a quick and thorough calculation of your zone credits.
Native American Indian Employment Tax Credit
The Native American Indian Employment Tax Credit provides employers with tax credits that offset a company's federal tax liability. This federal tax credit provides an incentive for employers to hire and retain individuals who are enrolled members of an Indian Tribe, and who live on or near an Indian Reservation. This includes the spouse of a member of a tribe. If you hire enrolled members of a Native American Indian tribe you are eligible for a federal income tax of up to $4,000 per eligible employee. However, Federal compliance is complex and very labor intensive. WMS can assist a company in determining if their business qualifies and if it does, securing the full amount of the credit to which they are entitled.
New Market Tax Credits
The New Markets Tax Credit (NMTC) Program is a federal program designed to make investment capital available to businesses in qualifying low-income communities. The purpose of the program is to create jobs and encourage economic growth. The program permits taxpayers to receive a 39% credit against federal income taxes for making qualified equity investments in designated Community Development Entities (CDEs). All of the qualified equity investment must in turn be used by the CDE to provide investments in low-income communities to most types of business. The credit is claimed over a seven-year credit allowance period. Businesses eligible to receive NMTC financing are corporations, partnerships, sole proprietors and not for profits that are in a low income community. An organization wishing to receive awards under the NMTC Program must be certified as a CDE by the Fund.