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Alpha-Mail                                               logo web sm 12mb
 A Tax Professional's Guide to Credits and Incentives, Courtesy of Alpharesults
 Vol. IX No. 5 May 2015
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In this issue
Contractors & Tax Credits
Spotlight on Oklahoma Credits and Incentives

Hello!

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

This month, learn more about how contractors and construction-related companies can really use tax credits.  Also, some of you may have clients with operations in Oklahoma, so be sure to see our overview of Okalahoma credits and incentives. We hope you can use this information to strengthen your client relationships! 

 

Thank you for reading Alpha-Mail -- please click reply to tell us what you think.

 

All the best, 

Dale&JimSigsSM1     

 Dale Stapler    Jim Tinsley
     Alpharesults, LLC 

 

 

 

Contractors & Tax Credits                      
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Weak recovery or not, seems like contracting and construction company activities have really picked up lately. And with increased business, these companies are now finally upgrading their software, training their employees, and adding more jobs. And guess what?  These activities may qualify for Georgia tax credits:

  • Job Tax Credits - Contractors and construction companies located in Opportunity Zones, Military Zones, or Tier 1/Lower 40 counties.
  • Retraining Tax Credits - For training existing employees on new technologies that include new software, upgrades, additional modules, customized systems and business process changes.

The following areas offer great potential for Retraining Tax Credits:

    1. Business management and project control - main business systems for operating the company, including accounting, estimating, costing, and project management. Examples include Viewpoint, Timberline/SAGE, Deltek or other software packages.
    2. Customer relationship management systems (CRM) - similar to Salesforce.com for the business development team.
    3. Mobile technologies: for field superintendents, project managers, technicians and others that use mobile devices/tablets such as Apple's iPad.
    4. Document imaging: for paperless contracts, agreements, invoices and document management.
    5. Computer assisted systems: CAD, building information modeling (BIM, virtual construction systems, and others.
    6. LEAN initiatives: Six Sigma, 5-S and other business process and work flow productivity changes.
If your existing or prospective client is a contractor or a construction company, tax credits can be a tremendous benefit for activities last year, this year and next year. Reach out to these companies to let them know about the potential $$ waiting for them!

 

 

JimSig  

 

 


Oklahoma Credits and Incentives            
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As we've mentioned before, 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 incentives in Oklahoma. I was able to speak with some Oklahoma economic development professionals and learned some of their details (Oklahoma Dept. of Commerce site click here).

Oklahoma's main tax credits and incentives are meant to encourage new jobs and investment within the state.  Incentives and credits are available to a wide range of industries that include manufacturing, distribution, logistics, information technology, and others.
 
Oklahoma's credits and incentives range in complexity and are typically on par with other states.

Oklahoma's incentives cover a wide range of income, sales, property, and energy taxes as well as grants and awards.

Quality Jobs Program - provides qualifying businesses creating quality jobs a special cash-back incentive to locate or expand in Oklahoma.

Investment/New Jobs Tax Credit Package - primarily for manufacturers, provides a five-year tax credit for investments or new jobs.

Quality Jobs + Investment Tax Credits - for large manufacturing projects

21st Century Quality Jobs - targets high-wage jobs in knowledge-based service industries.  Good thing we're in the 21st century!

Small Employer Quality Jobs - provides quarterly incentive payments to a qualifying small employer (90 employees or less) up to 5% of new taxable payroll for up to 7 years. Qualifying companies must also attain 75% out of state sales and pay 110% of average county wages.

Training for Industry Program (TIP) - no-cost/low-cost training for new or growing companies that create jobs.  Similar to other states.

Five-Year Ad Valorem Tax Exemption - for manufacturing, research and development, warehouse and distribution, certain computer/data processing services, wind power, refineries, and aircraft repair.

Other incentives include sales tax exemptions for manufacturers, freeport inventory benefits, industrial access road assistance, foreign trade zones, and a variety of state and local financing programs

Compared to Georgia, Oklahoma has:
  • A similar range of incentive and credits.
  • A narrower range of companies eligible for credits.   
  • More limited qualifying activities and $$ incentive amounts.
  • Most incentives must be pre-approved and carefully planned.
To summarize, Oklahoma is competitive with surrounding states.
 
Do any of your clients have Oklahoma connections?  If so, check out Oklahoma's opportunities, and everything will be OK!

 
DaleSig

   

 


About Us
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Alpharesults has assembled a team with the specialized knowledge and approach required to obtain state tax credits and incentives.  We are not a public accounting firm.  Rather, our business 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 with a wide variety of accounting firms.  For more information on our services, follow this link. 

 
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Contact Information
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email:  alpha-mail@alpharesults.com                   phone: 770-667-1332
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