Whether your business is having a banner year or in loss carry-forward situation, there are a variety of credits and incentives available, even though you may not be in a taxable income position.
When business is running at capacity, companies can overlook non-traditional methods to reduce costs. But when operations and the general business climate are running at lower levels, it often presents an exceptional and necessary time to utilize tax incentives that impact the bottom line.
Grant Thornton’s state and local tax professionals have a proven track record in helping companies find incentives that may have been overlooked. We have expertise in a variety of industries, including manufacturing and distribution, high-tech, retail, construction and financial services.
We can examine your company and help you uncover missed opportunities. State and local tax non-income tax incentives include:
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Training grants – many states have cash reimbursement to help cover the cost of external/internal training expenses
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Sales tax sharing agreements – best for retailers; includes ability to share in local sales tax collected from customers
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Enterprise zone benefits – various benefits for doing business inside zone boundaries; benefits vary from property tax to utility tax exemptions
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Cash grant and below market interest rate financing – state or local governments may pay for all or part of the capital investment for significant expansion projects
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Property tax abatement – local taxes may be abated or reduced for expansion-related investment
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Sales tax credits/exemptions – programs used to encourage spending on specific items
Sample business situation
During the past year, we met with a mid-sized, high tech company who was slashing its training budget due to the down turn in the economy. They needed to control costs, even at the expense of technical quality. Anyone familiar with the high-tech industry knows that today’s R&E and training are the keys to future success. We were able to work with the company’s training department and the state of Illinois to save many of their training initiatives by securing a $250,000 training grant that covered 50 percent of their training expenses.
Why Grant Thornton?
Grant Thornton's professionals have been identifying and capturing economic development benefits for more than two decades. Our tax specialists have served in government developing tax-credit programs, and they have experience working in the private sector.
We understand the challenges you face. We have been in business for over 75 years with a focus on entrepreneurial businesses and have a proven track record of finding tax savings for our clients.
For additional information or an initial discussion of your situation please contact:
Tim Schram
National Director
Credits and incentives
312.602.9022
