It can sometimes be very difficult for business to grow and prosper. Aside from all of the challenges that can come with owning and operating a business, navigating the tax system can be daunting. And, while taxes in California can generally be high, the state’s robust economy provides a lot of opportunity for businesses to tap into.
Does California Have Any Tax Credits I Can Qualify For?
There are a plethora of tax credits and incentives business might be able to take advantage of. An experienced tax collections lawyer will be able to help you identify which credits your business might be able to qualify for, and be able to assist you in filling out the proper documentation.
The IRS has a list of business tax credits and the appropriate forms, and California has several state-specific tax credits that you should consider.
What Are Some California Tax Credits?
1. California Small Business Loan Guarantee Program: This program is intended to help small businesses and farming enterprises. The loans can be used to expand a business, purchase inventory, or pay for new construction. The loans are guaranteed through partnerships with eligible lenders and could total in the millions of dollars. Companies with 1 to 750 employees are usually eligible.
2. California Alternative Energy and Advanced Transportation Financing Authority: The Authority collaborates to provide ways to reduce greenhouse gases and increase renewable energy resources via financing for industries. Additionally, the program also includes potential sales tax exclusion for manufactures.
3. California Film and Television Tax Credit Program 2.0: The program is intended to help keep California’s reputation for the visual arts by providing incentives to work in the state. The program offers a variety of incentives that, for example, could provide tax credit if one relocates a TV series to California.
4. Partial Sales and Use Tax Exemption for Tele-production or Other Post-production Service Equipment: You could take advantage of this program if you have an enterprise that is entertainment related. It could allow for tax exemptions to become available for the storage or use of machinery if it is primarily used in teleportation or other post-production services. Certain stipulations do apply.
5. Industrial Development Bonds: Private companies might be able to acquire bonds from the Infrastructure Bank, State Treasures Office, or local Industrial Developmental Authorities in order to finance operations. A professional tax lawyer would be able to use their connections and knowledge of California tax law to give you the best course of action if you are interested in acquiring industrial development bonds.
What About Federal Tax Credits For My California Business?
You might be able to receive a federal tax credit if you are a small business owner if you buy health insurance through Covered California for Small Businesses. The credits depend on a variety of factors, but you might be able to get an idea of your potential credit here.
If you operate a business in California, you don’t have to lose all of your hard-earned profits to taxes. Contact us today to see what your tax options are.
Posted in: Tax Planning