It has gotten more complex to utilize the retraining and job tax credits for prior year amended returns, and 2009 may be a "doughnut hole" for your clients (as in, nothing there - no tax credits can be utilized on amended returns), even though they can still get 2008 credits.

Here is the rule for 2009, 2010 and 2011: your clients can only amend up to one year after the return was due or extended.   

Suggestions:

• Extend if you can (both corporate and individual equity owners) - just in case there are tax credits that you and the client didn't know about.
• Before you amend, exercise caution and make sure that tax credit can be utilized.
• Beg your clients for no surprises!

The 2011 Legislature did not pass any form of tax reform, so there were no changes to the tax credits.  There is talk that Governor Deal may include "tax reform" in the special Legislative session in mid-August (which is mainly for re-districting). In addition, the Governor created a new Competitiveness Initiative (click here), which will include Georgia Department of Economic Development and Georgia Chamber of Commerce representatives, in addition to many senior level executives of Georgia companies.  This group will review last year's Tax Council recommendations as well as collect new information and feedback from across the state.  They will most likely make recommendations for legislative changes, and tax credits will be on the table again!!   We will keep you posted.

 

We are starting a new section specifically focused on healthcare due to new Federal incentives that have created a lot of $$ opportunities for healthcare providers and other companies. Unfortunately, they have also created a lot of confusion for CPAs!

These incentives were created under the American Recovery and Reinvestment Act of 2009 (ARRA). They are called by many names, including the Federal Medicare and Medicaid Electronic Health Records (EHR) Incentive Program (click here).  You may hear the words "Meaningful Use' in conversations with your clients.

These are not tax credits -- the $$s flow from Medicare and Medicaid re-imbursements to the healthcare providers. However, there is great potential for utilizing the Georgia Retraining Tax Credit because the incentives require certified EHR software and employee training.

Many of your non-healthcare clients may also benefit from this incentive, including information technology support firms, software companies, law firms and others.

To be continued. 

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.