What's the cost of not claiming business tax incentives?

 Here are some potential costs that businesses may face if they do not claim eligible tax incentives:

• Missing out on tax savings/credits: Many business tax incentives like investment credits, employment credits, R&D credits, etc. can directly reduce a business's tax liability and save them money. Not claiming available credits means missing out on these savings.
• Higher effective tax rates: Tax incentives effectively lower a company's tax rate if claimed. Not utilizing available tax breaks means paying taxes at the higher statutory rates.
• Reduced cash flow: Credits provide an influx of cash by allowing businesses to monetize unused tax incentives. Unclaimed credits mean less cash flow.
• Higher costs of capital: The tax savings from properly utilizing incentives allows businesses to retain more capital for investment and growth. Forgoing tax benefits raises the cost of capital.
• Competitive disadvantage: Companies that use tax incentives efficiently gain cost advantages over rivals who don't, making it harder to compete.
• Tax penalties: Improperly accounting for tax incentives can potentially lead to penalties and interest charges if incentives are claimed incorrectly or past deadline.

The specific costs will depend on the size of the business, the types of available incentives, and the overall tax position. Stryde can help businesses maximize incentives and minimize the potential costs of leaving tax money on the table.