Add CA$H to Client Year-end Planning
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The October 15 tax deadline has passed, and by now I'm sure you have already begun client year-end planning.
Preparing for client meetings can be a challenge. Reviewing the client's historical trends and projecting future ones will be especially tough this year, considering the economy, elections, bailouts and other distractions.
One item that needs to be added to your client agenda meeting: Tax Credit Review for Three Prior Years. Please note: Amending prior year returns for tax credits = CA$H back to your client.
Before the meeting, review the client's financials and tax returns for indicators of potential tax credits. These indicators include new software on the fixed assets schedule, consulting fees listed in the deductions, and payroll expense increases. During the client meeting, "dig in" and ask about these items. There may be real CA$H that was overlooked when their business was booming.
If the economic downturn is impacting your clients, helping them find cash could make a huge difference. They will thank you for your timely advice.
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New Energy Tax Credit
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There is a new tax credit for energy called the Clean Energy Property and Wood Residuals Tax Credit. It is complex and has two aspects - one for energy savings devices and construction and one for transporting wood residuals (logs, branches, and related debris) to renewable energy biomass facilities. There is an annual cap of $2.5 million for BOTH the Clean Energy Property and Wood Residuals parts of the credit.
Summary of the clean energy property tax credit:
- Applies to residential and commercial properties
- Includes solar energy devices, low energy lights, energy efficient building products and other related items
- 5 year carryforward
- Must be pre-approved by DOR to utilize
Summary of the wood residuals tax credit:
- Georgia Forestry Commission determines the dollar value of the wood residuals.
- For further information click here.
The tax credits are allocated on a first come, first served basis and must be placed in service between July 1, 2008 and December 31, 2012. See the Department of Revenue press release here.
As you may have guessed by now, nobody at the state can tell you how much $ you might get for this tax credit, even if you are approved. Some of your more patient clients may want to try it. But tell them not to count on a windfall. Thanks!
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Upcoming Alpharesults Events...
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We frequently speak about Georgia business tax credits to individual CPA firms as well as Georgia Society of CPAs chapter meetings. We hope to see you at one of the following upcoming presentations:
November 18, 2008 - GSCPA Rome Chapter lunch. Click here to register.
November 21, 2008 - We are not speaking, but this is a good one day session presented by
DOR and sponsored by The Institute for Professionals in Taxation. Click here to register.
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About Us
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Alpharesults has assembled a team with the specialized knowledge and approach required to obtain Georgia income tax credits. We are not a public accounting firm. Rather, our services complement those of public accounting firms and do not create conflicted loyalties, because our professionals do not perform attestation work or other external audit functions.
We focus on small to medium-sized businesses and work exclusively in Georgia with a wide variety of in-state and out-of-state accounting firms. For more information on our services, follow this link.
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