Training Events Add Up to Tax Credits
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Your clients may have several training events throughout the year but don't feel that they have enough training to bother with the Retraining Tax Credit. Well, they could be wrong about that! By asking a few more questions, you will be surprised at how their training events really add up to a lot of tax credit $$.
Here are several things to keep in mind to determine if your client's training events are worth pursuing for Retraining Tax Credits:
- Training events can be in-house, web-based, mobile, in the field, at a vendor's site or "Blended Learning" of many training methods.
- A training event means that someone (that is, a trainer) is instructing, showing, informing or educating someone else (that is, a student) regarding a new change in the way things are done in the client's business processes. Changes may include software, workflow and other business process changes.
- The training events may be phased in over time and rolled out to various areas/locations. They can be provided at various levels based on the student's needs (i.e., overview for all employees, intermediate for occasional users and high level for subject matter experts).
- The main $$ drivers for this tax credit are the number of employees trained and the $$ costs (including payroll) allocated to these training events (that is, more employees trained X more costs = more $$ tax credits).
We recently worked with a distributor that has embraced Lean Manufacturing, e-Commerce and other business process changes. After they saw the $$ benefit of the tax credit, they incorporated the Retraining Tax Credit as part of their process change evaluation so they could maximize their return on investments. During your upcoming year-end client reviews, ask about plans for training events and potential for the Retraining Tax Credit! |
Port Activity Tax Credit
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There has been a lot of discussion about deepening of the Savannah port and the large economic impact it will have on our economy (click here for summary report ). This increased activity may provide opportunity for your clients to utilize the Port Activity Tax Credit.
Here is an overview: - Your client must be utilizing the Job Tax Credit or the Investment Tax Credit.
- They have to increase their shipments (measured in net tons, containers, or twenty-foot equivalent units) through a Georgia port (such as Savannah or Brunswick).
- The client must hold title to the item (that is, their name must be on the bill of lading) when it is imported or exported through the port.
- This tax credit provides a bonus on top of the Job Tax Credit (additional $1,250 per job) or the Investment Tax Credit (increases the tax credit to 5%).
In summary, the Port Activity Tax Credit can be an "icing on the cake" bonus, but it may be confusing to determine if qualifications have been met. Your clients may be planning expansions to use Georgia ports and may need your help in identifying their potential net after tax benefit of the credit.  |
About Us------------------------------------------------------------------------- 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. |
