------------------------------------------------------------------------------------------------------------------
Alpha-Mail                                               logo web sm 12mb
 A Tax Professional's Guide to Credits and Incentives, Courtesy of Alpharesults
 Vol. X No. 2 February 2016
------------------------------------------------------------------------------------------------------------------
In this issue
Your New Tax Credit Team
Spotlight on Connecticut Credits and Incentives

Hello!

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

This month, learn how your newest employees can help your clients uncover tax credits!   Also, some of you may have clients who own businesses in Connecticut, so be sure to see our overview of Connecticut 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 
 
 
 

Your New Tax Credit Team                          
-------------------------------------------------------------------------

Your brand new tax staff has the potential to find a gold mine for your clients if you train them to look for tax credit signals. In many firms, these new employees are the ones assigned to collect, compile and review tax data from clients. They then enter this data to the tax filing software. Perfect!  This process provides your firm with an ideal opportunity to uncover tax credit signals and opens the door for you to discuss these with your clients immediately. This is especially critical for long term existing clients that may feel ignored.

For example, a client's tax data includes a $50,000 invoice for software. Your staff person enters this as depreciation expense in the asset group software and then goes on to the next item. This is a MAJOR signal for the Retraining Tax Credit. But due to pressure to stay billable and meet tax filing deadlines, the employee continues with the assigned task and doesn't tell anyone, and an opportunity to help your client is overlooked.

Instead - have a quick 10 minute early morning training session with your team that receives and reviews client tax data. Use an example of an existing client that got a tax credit in a prior year (ex. Retraining), show the signal (ex. software depreciation expense was $50,000) and the resulting tax credit $$. Then have a contest, and the first one to find a tax credit "signal" wins a prize. Your clients will be glad you found their credit $$ and your new employees will feel like they are contributing to the firm and your clients. New eyes looking at existing clients are GREAT for client and employee retention, and in addition, you'll get an effective new tax credit team! 

 
JimSig  

Connecticut Credits and Incentives            
-------------------------------------------------------------------------
      
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 Connecticut, and their state economic development professionals gave us some details (CT DECD site click here).
 
Connecticut offers a collection of credits and incentives for new and existing businesses.  CNBC ranked Connecticut #34 in their 2015 America's Top States for Business survey (Georgia was #5 in the same survey).    
 
Incentives and Credits include:  

Tax Credits for Connecticut Business Investments -- Enterprise Zones for qualifying (medium to larger) corporations, a Fixed Capital Investment 5% credit, Insurance Reinvestment Fund (large investments), Machinery and Equipment credits, Service and Manufacturing Facility credits, and Urban and Industrial Site credits.  Pre-approval required, of course, and caps apply.

Tax Credits for Creating Jobs and Developing a Connecticut Workforce -- New Jobs Creation credits against payroll taxes, fairly decent. Qualified Small Business Job Creation credits, Human Capital Investment credits, and Job Expansion tax credits.

Other Tax Credits -- Credits for Film, Television and Digital Media, Research and Development (similar to other states), and other special and assorted incentive programs.
 
Compared to Georgia, Connecticut has:
  • Much higher corporate and higher personal income tax rates.
  • Higher combined state and local tax burden
  • A narrower range of incentives.
  • Pre-approval required for all incentives
To summarize, Connecticut is below average for business tax incentives, but they do enjoy a prime Northeast location. 
 
 
DaleSig
   
 

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. 

 
Quick Links...
-------------------------------------------------------------------------

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


Forward Alpha-Mail to a Friend!

Click link below: