Welcome to Alpha-Mail, the monthly newsletter about tax credits and incentives for tax professionals.

This month, learn when job increases at your clients really count for tax credits.  Also, some of you may have clients with operations in Iowa, so be sure to see our overview of Iowa credits and incentives. We hope you can use this information to strengthen your client relationships! 

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All the best, 

 Dale Stapler    Jim Tinsley
     Alpharesults, LLC 

Your clients may be coming out of the recession (well, some of them!) and increasing their headcounts. These employment increases may qualify for a Georgia job tax credit (or one of its variations). But first you need to carefully analyze the details to determine if there is potential.

Here are some items to check when reviewing your client's potential:

• Job Tax Credit - If your client has utilized the job tax credit in the past, then the new headcount monthly average for the year must be an increase over the previous largest average (click here for details).
• Opportunity Zone - This location-based tax credit for any business type is popping up all over Georgia. The headcount increase must be within the designated date range. For example: Commerce, Georgia's Opportunity Zone was started February 5, 2013 (click here for details).
• Less Developed Census Tract - This location-based credit for designated Business Enterprises may change annually. In addition, the 2010 Census boundaries may have changed your client's eligibility (click here for 2013 details).
• Military Zone - This location-based tax credit for any business type could also change annually and is based on the 2010 Census boundaries (click here for details).    

Clients always appreciate it when you find extra $$ from state credits and incentives. So when your clients add jobs, help them make it really count!  

Our Georgia clients frequently ask us to investigate potential credits and incentives in other states where they have operations, potential acquisitions or strong relationships with customers or vendors. In addition, private equity groups ask us about potential $$ for their portfolio companies.

We were recently asked about credits and incentive in Iowa. I spoke with Beth Balzer, Iowa's Team Leader for site selection consultants, and learned some of the specifics. 

Iowa's tax credits and incentives cover new jobs, investments, workforce training, research and development activities, and sales tax exemptions.  Incentives and credits are limited to targeted industries that include manufacturing, biosciences, and financial services, among others.  

• Investment tax credits are blended with job increases and are tied to Enterprize Zones or "High Quality Jobs" high wage levels.  Sometimes cash $$ awards are also available. 
• A tax credit for new jobs can be earned for increasing employment by 10% and contracting with the local community college for a workforce training program (260E Program).
• A training program for existing employees (260F Program) can result in cash grants (not tax credits) to offset retraining activities.      
• The Research and Development tax credit is tied to the federal R&D credit and is refundable, meaning it can be used even if the company doesn't have enough tax liability to cover the amount.   

 Compared to Georgia, Iowa has:

• Similar corporate and personal tax rates, which means that state tax credits are beneficial to business owners.
• A narrower range of companies that are eligible
• Better/more coordination of all possible credits and incentives
• More clawbacks and gotchas if the company doesn't hit the targets
• No credits or incentives without some form of state pre-approval 

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.