Tax extenders for businesses
The Tax Increase Prevention Act of 2014 (TIPA) extended through Dec. 31, 2014, a wide variety of tax breaks, including many tax credits which are particularly valuable because they reduce taxes dollar-for-dollar. Here are three credits that your business may benefit from when you file your 2014 returns:
- 1. The research credit. This credit (also commonly referred to as the “research and development” or “research and experimentation” credit) rewards businesses that increase their investments in research. The credit, generally equal to a portion of qualified research expenses, can be complicated to calculate, but the tax savings also can be substantial.
- The Work Opportunity credit. This credit is available if you have hired from certain disadvantaged groups, such as food stamp recipients, ex-felons and veterans who’ve been unemployed for four weeks or more. The maximum credit ranges from $2,400 for most groups to $9,600 for disabled veterans who’ve been unemployed for six months or more. This can lead to big savings on your tax bill.
- The Sec. 45L energy-efficient new home credit. An eligible construction contractor can claim a credit for each qualified new energy efficient home that the contractor built and that was acquired by a person from the contractor for use as a residence during 2014. The credit equals either $1,000 or $2,000 per unit depending on the projected level of fuel consumption.
Wondering if you qualify for any of these tax credits? Or what other breaks extended by TIPA could reduce your 2014 tax bill? Contact Jim Komos at 216.831.7171 or jkomos@cp-advisors.com for more information.
The tax experts at Ciuni & Panichi have been assisting organizations like yours for over 40 years, and we look forward to helping your company in the future.
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