Here are a few reasons why retailers should consider using tax credits:
- Employee tax credits - There are several tax credit programs that provide incentives for hiring and retaining certain groups of employees. For example, the Work Opportunity Tax Credit provides a credit for hiring veterans, ex-felons, long-term unemployment recipients, and other targeted groups. Using these credits can help retailers lower labor costs.
- Energy efficient equipment credits - Tax credits are available for upgrading to more energy efficient lighting, HVAC systems, refrigeration units, and other equipment. These can help retailers save on utility expenses in the long run.
- Disabled accessibility credits - Tax credits can be claimed for certain costs associated with improving accessibility for disabled customers and employees. This helps retailers ensure their facilities meet ADA requirements.
- Inventory tax credits - Some states offer tax credits that allow retailers to deduct a portion of the sales tax paid on inventory purchases. This reduces a retailer's overall tax burden.
- Historic building renovation credits - For retailers housed in older, historic buildings, federal and state historic renovation tax credits are available. These help offset renovation costs to restore historic buildings.
- Locational credits - Some local and state governments offer tax credits as an incentive for retailers to open locations in certain lower-income or distressed areas in need of economic development.
The key benefits are lower operating costs and potentially greater customer accessibility and retention. This free software will determine which tax credit programs a retail business may be eligible for and help your business obtain them!!
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