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 A Tax Professional's Guide to Credits and Incentives, Courtesy of Alpharesults
 Vol. IX No. 9 September 2015
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In this issue
Hungry for Tax Credits?
Spotlight on Delaware 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 Georgia's food processing businesses can take advantage of tax credits.  Also, some of you may have clients who own businesses in Delaware, so be sure to see our overview of Delaware 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 
 
 
 

Hungry for Tax Credits?                     
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Georgia offers several tax credits for poultry, pork, sausage, vegetable, pecan, peanuts, Ag business and other food processors. Their activities that may qualify for the following Georgia tax credits:
  • Job Tax Credits - For distribution, manufacturing, or wholesale operations, or if the company has locations in Opportunity Zones, Military Zones, or Tier 1/Lower 40 counties.
  • Investment Tax Credits - Qualified manufacturing operations may benefit from capital expenditure and operating lease investments for investment tax credits, which can include land, buildings, equipment and packing sheds.
  • Retraining Tax Credits - For training existing employees on new technologies that include new software, upgrades, additional modules, customized systems and business process changes.
 
Here are more details for those Retraining Tax Credits:
  • Enterprise Resource Planning systems (ERP) - order entry, billing, accounts receivable, and human resources such as Microsoft Dynamics, Just Food ERP, Sage software, Vicinity Manufacturing software and SAP
  • Customer Relationship Management systems (CRM) - sales management, lead tracking, customer service and marketing, such as Salesforce.com and other systems
  • Warehouse management systems (WMS) - order picking, replenishment, inventory management, and shipping, such as JDA software, Foxfire, and Ramp Systems
  • Equipment - equipment for cleaning, cutting, cooking, packaging, bailing and other processes
  • Programs and initiatives - SQF 2000, ISO-9000, HAACP, HARPC, GMP and others
  • LEAN Manufacturing and workflow changes - business process and workflow changes for quality, costs, on-time delivery and other initiatives.
 
Help your food processor clients satisfy their hunger for tax credits. Reach out and let them know about the potential $$ waiting for them! 

 
JimSig  

Delaware 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 Delaware. Some state economic development professionals outlined some of their details (Delaware Economic Development Office site click here).
 
Delaware offers several tax credits, grants and loan programs along with technical assistance programs that are available to both new and existing businesses.  CNBC ranked Delaware #38 for the cost of doing business in their 2014 America's Top States for Business survey (Georgia was #1 in the same survey).    
 
Incentives and credits include:  
 
Job Creation Tax Credit: Allows for eligible businesses engaged in qualified activities to receive tax credits against corporate or personal income taxes, gross receipts tax, and public utility tax. The business must hire five or more qualified employees, make an investment of at least $200,000 ($40,000 per qualified employee) and operate in a qualified facility.

Research and Development Tax Credit: Qualified businesses with research and development expenses are eligible for Delaware research and development tax credits for the taxable year up to 50 percent of the Delaware income tax liability.  Amount doubled for smaller businesses.

Clean Energy Technology Device Manufacturers' Tax Credit: Applicable to clean energy technology device manufacturers of solar power devices, fuel cells, wind power devices and geothermal power devices. Those eligible can qualify for tax credits of $750 for each qualified employee.

Business Finder's Fee Tax Credit: Incentivizes existing Delaware businesses to leverage relationships with suppliers, customers and other businesses to relocate to Delaware. Both the existing Delaware business and new relocating business are eligible for tax credits.  $500 per job for three years.

Other incentives include Veterans Opportunity Credits, Industrial Public Utility Tax Rebates, and a variety of loan programs, grant programs, workforce training grants, and property tax incentives.
 
Compared to Georgia, Delaware has:
  • Higher corporate and personal income tax rates.
  • A narrower range of incentives.
  • Pre-approvals required for many incentives
To summarize, Delaware is not as competitive as Georgia for business tax incentives.  But their Eastern Seaboard location could provide advantages, depending on logistical needs.  
 
Do any of your clients have Delaware connections?  If so, get busy collecting information and planning early to maximize their incentive potential!
 
 
DaleSig
   
 

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