Claim Your Tax Credits
It's not just the R&D Tax Credit anymore! Although the R & D Tax Credit has arguably had the most significant impact on the manufacturing industry regarding tax credits, it is not the only credit available to you. Hundreds of Federal, State, and Local tax credits are designed specifically for your company. Understanding, locating, and claiming these tax credits is notoriously difficult to do. We have a solution to this problem. Our Tax Management System lets you know what you are entitled to and how to claim it quickly.
Average Per Property
The Manufacturing Industry
The past several years have impacted every industry to different degrees. Manufacturing was not immune. A major byproduct of the pandemic has been disruption to production and supply chains, as goods and commodities in the upstream supply chain are being produced in lower quantities, and sometimes not at all.
The pandemic also highlighted the need for manufacturers to respond and adapt to unexpected scenarios. While it is nearly impossible to predict the specifics of the next global disruption, it is well within your reach to institute the proper practices and processes that will enable you to pivot and adjust to unpredictable and unexpected changes.
One of these practices is taking full advantage of all available tax credits and incentives. Hundreds of Federal, State, and Local tax credits were explicitly designed with the Manufacturing Industry as the beneficiary.
Navigating tax credits has been notoriously difficult. You are focused on running your company, keeping the day-to-day operations afloat. You can't be expected to have the knowledge of how to find, process, and claim your tax credits while keeping your company healthy. The Tax Management System eliminates that burden and allows you to use a simple system to locate all tax incentives and credits you qualify for and set up your claim for you. This system was designed with you in mind and works within your current company structure. It is now simple, quick, and easy to claim everything your business is entitled to.
These credits are a dollar-for-dollar offset against regular income tax liability and have enabled many startup and mature businesses to hire additional employees, invest in new technologies and equipment, and finance other business objectives. The average R&D benefit we see for clients is $270,000 per year.
Practical solution: Kill two birds with one stone by hiring workers from “target” groups. About $1 billion in WOTC are claimed each year. On average, 16% of manufacturing employees qualify for WOTC.
The challenges of claiming WOTC have been eliminated with the Tax Management System. The system handles everything from your candidate survey to submission to your state workforce agency and everything in between.
$26,000 Existing Employees
The Employee Retention Tax Credit hype in the media is currently overwhelming! Because of this many businesses are dismissing it and missing out on its impact.
Most manufacturers fail to take advantage of cost segregation, a tax-reduction strategy that generates substantial savings in federal income taxes even though they are one of the industries that qualify the highest.
Buildings used in a trade or business are typically depreciable over 39 years. But parts of a building are classified as personal property for tax reporting purposes. Manufacturing properties tend to have many of these types of components that make up the facility's inner workings. A cost segregation study identifies these components, assigns a value to them, and enables the owner to depreciate those items over a shorter time frame, typically 15 years. When components can be depreciated over any period less than 20 years, they become eligible for 100% bonus depreciation, meaning the owner can immediately recoup their value in the form of tax deductions.
A cost segregation study gives you the time value of your money. The improved cash flow can help purchase new equipment to ramp up production, buy inventory, or whatever the owners see fit.
Unlock Your Business's Financial Potential
Take the first step by scheduling a complimentary guided assessment with Snapshot Business Services. Our experts are ready to provide valuable insights and tailored recommendations to drive your business forward.