Federal Tax Credits

Work Opportunity Tax Credit (WOTC)

The Work Opportunity Tax Credit creates a hiring incentive on the federal level that offers tax credit valued at up to $9,600. This credit is available to companies that hire individuals from these groups:

  • Families that qualify for food stamps
  • Families that qualify for TANF (cash benefits)
  • Qualified ex-felons, as well as work release, paroled and pardoned individuals
  • Qualified veterans
  • Qualified summer youths
  • Vocational rehabilitation referrals
  • Qualified individuals living in a Rural Renewal Community or Empowerment Zone
  • Qualified Supplemental Security Income (SSI) Recipients

Employee FICA Tip Credits
Per IRS regulations, companies in the food and beverage industry may qualify for credits based on Medicare and social security taxes paid on tips their employees receive. In order to qualify, an employer must:

  • Hire employees who may receive tips for serving or delivering beverages or food, particularly in an industry where tipping is standard.
  • Have paid employment taxes on the tips paid.

The credit amount equals the amount paid in Medicare and social security taxes on those tips. However, tip amounts do not qualify if they are used to meet minimum wage requirements.

Research and Development Credits

The Research & Development Tax Credit (R&D) provides tax incentives to qualifying companies to help expend the cost of investments and research efforts to develop new and improved processes or products. This credit is open to all companies, not just those in the technical field.

As of December 2003, IRS Regulations are retroactive, which has made qualification easier. State R&D credits may also be available.

State Tax Credits

There are more than 3,000 types of tax credits and incentives employers may qualify for nationwide. A1 TAX LLC is able to assist its clients with determining whether they qualify for these lucrative incentives.

Business Tax Incentive Zones are created by local, state and federal government institutions and offered to local businesses to encourage them to expand or develop in specific regions of the United States. Thousands of these zones are managed and funded throughout the country, which is time-consuming and often overwhelming. Let A1 TAX LLC save you time and money with our dedicated compliance team in maximizing your potential tax credits.

A1 TAX LLC will uncover many different types of eligible tax incentive zones, such as Manufacturing Enhancement Areas (MEA Zones), Enterprise Communities (EZEC), Targeted Tax Areas (TTA), Federal Empowerment Zones, federal zones (EZ) and communities (EC) and determine your specific incentive.