Category: Specialized Tax Incentives

Specialized Tax Incentives for the Medical & Health Care Industry

If you have yet to hear; Local, State, and Federal Governments have been feverishly enacting numerous incentives to help stimulate business economies. Due to the high tax brackets of most medical practitioners, these incentives are now an essential part of the tax planning process. If you haven’t had a thorough review of your qualifications for incentives, keep reading.

How Much Money is Available?
The average available benefit for a small practice with their own building is $160,000.

Who Qualifies?
The following is a list of common qualified practitioners:

  • Physicians
  • Dentists & Orthodontists
  • Dermatology & Skin Care
  • Vision & Eye Care
  • General Practicioners
  • Surgeons
  • Therapists
  • Medical Imaging

How Do I Qualify?
You may qualify if you meet any of the following:

  • Own Commercial Property
  • Directly Employ U.S. Staff
  • Pay Real or Personal Property Tax
  • Pay State or Federal Income Tax
  • Perform Energy Efficiency Upgrades
  • Upgraded Equipment Purchases

How Do I Learn More?
If you would like a thorough analysis of incentive dollars available for you, please contact us today.

Flint Journal: Company Helping Find Stimulus Money, Tax Breaks for Local Businesses

FLINT, Michigan — A Flint company that helps local businesses qualify for government stimulus money is doing so well that it plans to hire about 100 employees in the next year.

Growth Management Group managing partner Ryan Maddock said the company, at G-3490 Miller Road, directs businesses to stimulus act provisions that have secured an average of $200,000 for establishments in Genesee County.

Rowe Professional Services Company is one company that has benefitted. Rowe Controller Douglas Kline said his company claimed tax breaks on its building, at 540 S. Saginaw St., provided through a cost segregation plan that “takes this big monster of a building and breaks it down into components.”

Depreciation on the building has been calculated and the company receives lower tax bills for years to come, Kline said. He could not provide specific figures on tax breaks for the $23 million project, calling the breaks “beneficial.”

Growth Management Group also found tax breaks during a research and development study for Rowe. Kline said tax law changes in 2009 allowed the company to refile its tax returns for 2006, 2007, 2008 and 2009, and it will do so for the 2010 tax year for some “very significant tax credits” on federal income tax returns.

The management group has worked “hand-in-hand” with Rowe’s accounting firm, and Kline said the business has been “really pleased with the results.”

Maddock said several of the breaks come through three main stimulus plans, including the Hiring Incentives to Restore Employment Act, which allows an employer to take a tax credit of up to $1,000 per worker hired between Feb. 3, 2010, and Jan. 1, 2011. The act also offers up to $250,000 for small businesses to write off equipment investments.

The Small Business Jobs Act has allowed more than 1 million companies to receive stimulus money, the biggest stimulus expansion since 1981, said Maddock, who pointed out that a stimulus act of some kind has been done every year in Michigan and nationwide since the early 1980s.

The SBJA, providing eight tax cuts and $30 billion in small-business lending, applies only to businesses that have $50 million or less in annual sales. Companies can apply for funds retroactively back to 2007.

A commercial property owner’s benefit is open to anyone who purchases a commercial property for $650,000 or up, or has done at least $250,000 in renovations within the past 20 years.

Lawrence Moon Funeral homes, with locations in Saginaw, Flint and Pontiac, has received such money. One of the misconceptions people have about the money, Maddock said, is that the benefits come “with a lot of strings attached.”

Business is going so well for Growth Management Group that it will move to the former Diplomat Pharmacy headquarters at the corner of Corunna and Elms roads in the next 45 days, Maddock said.

He said he hopes to add more than 100 Flint-area employees at the new location in the next 12 months, with positions in sales, customer service, law and engineering. Pay will range by position and experience.

Growth Management Group does charge for its services, between 10 and 33 percent of the benefit garnered. And while the funding is referred to as stimulus, Maddock said the laws are giving back to those who have invested in the community.

“This is a reward for work that you’ve already done,” Maddock said. “You are honestly getting some of your own money back.”

The above article was reposted from The Flint Journal.
Original Article By:  Roberto Acosta 


Two of the Biggest Tax Breaks for the Restaurant Industry

Two of the biggest tax provisions that affect the restaurant industry are the 15-Year Restaurant Depreciation and the Worker Opportunity Tax Credit.

Both tax provisions expired at the end of 2011 but look like they are back with the initial passing Family and Business Tax Cut Certainty Act.

The National Restaurant Association mounted a wide scale campaign to inform Congress of the importance to provide tax certainty to restaurateurs.

15-year Depreciation

Simply put this provision allows a taxpayer to allocate the costs of an asset over the period in which they are used.  The 15-year Depreciation provision allows leasehold improvements, restaurant improvements and new restaurant construction, and retail improvements to be depreciated over 15 years rather than the standard 39-year recovery period that would normally apply to nonresidential real property.

Due to the nature of the industry restaurant buildings experience daily wear and tear that many industries do not.  As a result of this increased wear and tear, most restaurants remodel or update their buildings every six to eight years.  Thus, the 15 year provision more accurately fits the recovery timeframe.

Benefits of the 15-year Depreciation provision:

  • Reduces cost of capital expenditures
  • Increases cash flow
  • Allows hiring more employees
  • Allows capital expenditures to expand business
  • Reinvestment in construction & renovations positively affects the economy

Worker Opportunity Tax Credit

This tax credit is made available to employers who hire individuals from several targeted groups facing significant barriers to employment.

Examples of WOTC-target groups:

  • Veterans receiving food stamps or are unemployed suffering a service related disability
  • Former Felons
  • Disconnected Youth
  • Family Members receiving TANF

Currently the restaurant industry employees over 13 million people nationwide.  Many of these individuals were hired specifically due to the WOTC act being in place.   The WOTC provision allows workers who may not have been able to, move into self-sufficiency by earning a steady income and becoming contributing taxpayers.

Hiring from the group of qualified job seekers via the WOTC provision can mean direct federal tax savings to your business ranging from $1,200 to $9,000 per qualifying employee.  Restaurants tend to experience better than average qualification rates in state and federal hiring credit programs.  Hundreds of thousands of dollars are provided via this provision annually.

Who Qualifies for Tax Incentives and Stimulus Money?

We hear a lot about stimulus money these days. We hear who is getting it and what kind of positive things it is doing for the nation. Those stimulus dollars, however, should be working to benefit more local, small to mid-sized businesses. If you fall into this category, your money is likely going to someone else’s business; potentially your competition.

Wading through government forms, even on the simplest level, can be aggravating and time consuming. The idea of ‘free money’ from the government can also be a very scary prospect for skeptical investors and business owners. But there are people out there who have spent a great deal of time learning how these programs work to provide businesses with opportunities that can be extremely beneficial.

Ryan Maddock and Jeremy Harrison of Growth Management Group (GMG) lead a small but growing team of dedicated, positive and knowledgeable staff members that help business owners bridge the daunting gap between not having stimulus money and having it. These funds are not the same as grants which typically need to be used for ultra-specific purposes. Stimulus money can, in many cases, be used as discretionary funds. This frees up the business owner to use the funds as his or her vision sees fit whether it is for new software, equipment, tax offsets, etc. Manufacturing firms in the area, businesses in other states, hotels, restaurants such as Leo’s Coney Island and even Lawrence Moon Funeral Home have capitalized on stimulus money through GMG’s services.

There are currently four programs in full swing for a variety of businesses; manufacturing across the U.S. and in some cases Canada, commercial property owners who have purchased their property within the last twenty years, the HIRE act which pays employers that hire 25 new employees a year (that includes turnaround) and energy credits/energy incentives which is a program that will probably evolve further. Currently the Obama administration has set aside 60 billion dollars for renewable energy. While these programs do have other stipulations and guidelines, GMG has been successfully wading through paperwork for clients in 38 states. Ryan pointed out that stimulus funds have been around since the 1980’s. These programs usually morph into new programs over time and they’re not going anywhere.

If you’re wondering why you’ve not heard much about the eligibility for these funds that is simple to explain; the federal government isn’t always that great at advertising and marketing. As a result, ninety-two percent of companies that qualified for these funds last year didn’t access them and the eight percent that did, were larger companies who tend to have an easier time accessing these sorts of programs

Staying on top of the changes in federal programs is crucial to the success of the service offered by GMG. Fees are based on a percentage of funds obtained, not a flat or hourly rate which business owners have to come out of pocket for. And in many instances, the funds can be applied retroactively from as far back as 2006.

Worried about how your CPA feels about these “too good to be true” stimulus dollars? GMG works with local CPA firms so they understand the hesitancy that comes along with these types of government programs and are able to alleviate those fears. Do you feel a sense of malaise when it comes to paying taxes? There’s good news for you too. Since stimulus funds are made up of tax dollars, this might be your chance to cash in on all the money you’ve doled out over the years to upgrade your business.

See Full Article as Featured in Downtown Revival Magazine.   Click Here

2012 Tax Incentives for Manufacturers

The U.S.’s tax system is uncompetitive and makes it difficult for manufacturers to stay competitive.  Currently the United States has the number 1 Corporate Tax Rate.  However, tax incentives and credits have been put in place that allow manufacturers to reinvest, create and retain jobs to become more competitive.

The National Association of Manufacturers advocates strongly on behalf of the manufacturing industry nationwide to renew and extend tax credits that directly affect your industry.  According to their recent Statement to the Subcommittee on Select Revenue Measures dated June 8, 2012, “Renewing the tax extenders will provide a bridge of certainty and predictability for manufacturers.”

On Friday, August 3, 2012 the Senate Finance Committee approved the Family and Business Tax Cut Certainty Act.  This act extends more than 40 programs including the R&D tax credit and the WOTC tax credit through 2013.

The U.S. offers some of the world’s richest tax incentives, but chances are your organization is not taking advantage of them and getting the cash you deserve.   Working with an established cost recovery firm with it’s staff of engineers and attorneys specializing in tax and IP will maximize the credits you qualify for and, most importantly, provide a defense for those credits.

Specialized Tax Incentives for Restaurants

You are a small business owner who owns and operates a restaurant. Your time is consumed with ensuring tables are turned and your business is moving forward.  You do not have time to research specialized tax incentives let alone determine if you qualify.  You are not uncommon.

Below is a brief summary of tax incentives you may be missing out on:

  • Commercial Building Tax Deduction
    Tax deduction for expenses incurred for energy efficient building expenditures
  • Engineering-based Property Cost Allocation
    Recover costs through deprecation of tangible property used in the operation of a restaurant business.Qualified Items Include: Beverage Equipment, Storage Area, Furnishings, Bar Area, Flooring, Lighting, Wiring, Sound System, and Kitchen Area
  • Employee Tax Credits
    Local, State, and Federal Incentives to hire and retain employees. Available credits up to $9,000 per qualified new hire.Credits are available for employees in the following categories: Those living in Empowerment Zones, Young Adults, Wounded or Disabled Veterans, Food Stamp Recipients, and those receiving Supplemental Security Income
  • Commercial Property Tax Reduction
    Reduction available on both Personal and Real Property Taxes paid.
  • Section 179
    Can take an increase in deduction up to $35,000 of the cost of eligible equipment purchases

The above is merely a brief list of some of incentives you could benefit from if you are a restaurant owner.  The easiest way to determine your qualification is to ask an expert.

“R&D, I don’t think we do that!”

If, when you hear R&D, you think of people in lab coats tinkering with chemicals, ultra high tech industries and Fortune 500 companies, you are not alone.  However, things have changed!

In 2001 the IRS changed the definition of R&D and the changes were so broad that it virtually encompasses all manufacturing or technology organization in some way.

Why is this?  It’s because, by and large what do manufacturing companies do?  They design new products, improve existing products, come up with new processes, or make improvements to existing processes used to make products.  Most of these organizations don’t have an R&D department and probably don’t consider that what they are doing is “R&D”.  They are making these improvements and changes because they MUST stay competitive and yet, as the government sees it, “R&D” is exactly what they are doing.

Here are some of the everyday activities that would qualify for the credit:

  • Designing the process to fabricate the metal to reduce shrinkage and increase its quality
  • Programming CNC machines
  • 3D CAD Engineering with programs like SolidWorks
  • Developing and testing of prototypes
  • Quality assurance – First-piece quality inspections
  • Designing and developing of specialty tooling and fixtures
  • Considering alternative metals to develop the product
  • Considering different metal thicknesses
  • Developing engineering drawings
  • Developing weld procedures
  • Bending of metal (e.g. sheet metal) has to consider the stressing and stretching
  • Considering strength of final product for application (meets specifications)

So, the next obvious question is…”How do We get some money?”  The IRS allows companies to go back three open tax years to take advantage of the credits they may have missed.  (Nice of them isn’t it?)  Just 120 days after submitting the amended returns, you can get cash in your pocket.  Additionally, you can take credits for current and future years if you continue to perform activities that qualify for this credit.

To find out if your organization would qualify ask yourself a few questions:

  1. Are you expecting to be profitable this year, or were you profitable in any of the last 4 years?
  2. Is your average annual payroll for these years in excess of $1 million?
  3. Is your company structure a C Corp, or an S Corp/Partnership?

If you answered yes to all of these items then you definitely need to have an R&D Tax Consulting firm take a look at your organization.    You could potentially have a five-figure credit, even higher credits are available for organizations with higher payrolls.

Local Flint Businesses Teaming Up To Stimulate Flint Economy

Flint based organization, Growth Management Group, LLC (GMG) is proud to announce they are teaming with Insight Institute of Neurosurgery and Neuroscience (IINN) to perform a stimulus review allowing both organizations to continue moving towards their combined goal of transforming Flint’s economic state.

GMG’s Total Savings Review will focus on stimulus incentives in the areas of Research & Development, Commercial Property and Hiring. Although it is too early to determine final benefits, GMG anticipates procuring IINN a NET tax benefit of over $1,500,000 over the next five years.

GMG National Director of Sales, Jeremy Harrison states, “We are extremely excited to partner with Amer and the entire IINN team. Procuring these incentive and savings opportunities, especially for local firms is why we are in business. We look forward to a long term relationship that will not only provide a great business partnership but will help facilitate the economic recovery of Genesee County.”

GMG is a Flint-based full service training, development and cost savings consulting firm. Their vision is to stimulate local economies by providing an extensive array of products, services and strategies that help people and businesses fulfill their potential. GMG recently announced their move to a new national headquarters, taking over the recently vacated Diplomat Pharmacy headquarters at Elms and Corunna Roads in Flint Township. With this move the company plans to add up to 100 new employment positions for Genesee County residents.

IINN plans to invest $18 million over the next 10 years in expansion and create an up to 120 additional jobs over the next 5 years. IINN has teamed with Diplomat Specialty Pharmacy to expand the Great Lakes Tech Center – former home to GM Headquarters and create more than 1,000 jobs over the next five years.

GMG and IINN look forward to helping restore the local economic climate and encourage local businesses to pursue all available opportunities to recover incentive dollars.

More information regarding GMG can be found online at www.gmgsavings.com or by calling 888-705-5557. To learn more about IINN, please visit www.iinn.com.

Michigan Company Helps Find Millions in Tax Breaks for Small and Mid Sized Companies

Jeremy Harrison of Growth Management Group interviewed by Michigan Business Magazine about helping small and mid sized businesses find tax breaks and stimulus money.

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For many businesspeople, the word “stimulus” might as well be a four-letter word.  For Flint-based Growth Management Group, tax incentives are no dirty word, but rather spell opportunities for businesses to find federal and state incentives to help their bottom lines.

The company seeks out the tax incentives, energy savings and hiring incentives that businesses and many certified public accountants miss during their tax preparation. The company began in the mid 2000s as a lean consulting firm, helping manufacturers remain competitive. By chasing incentives that manufacturers left on the table, GMG stumbled upon a business opportunity as manufacturers in the state were battered by the economic downturn. Sales Manager Jeremy Harrison took time to speak with MiBiz about the 25-person firm and its role turning over the rocks in companies’ books looking for the untapped tax incentives there.

 

MiBiz: How much is out there for companies in terms of untapped incentives?

Harrison: We target the small to medium size business. The state and federal programs are called stimulus incentives when really they are tax based.  If someone is getting ready to write a check (for taxes), they should be looking at every single program to help offset them. The areas of the programs are anywhere from commercial property owners to manufacturing research and development and payroll, such as the HIRE act. That is just part of the hiring incentives out there. There are hundreds of incentives that vary by state and by some municipalities.  For our average client, we can save around $200,000. For some people, it is significant. For others it is a drop in the bucket. We don’t go after the GMs or Fords of the world — they’ve got their own teams of lawyers and accountants looking for these incentives. For a client who may have paid a couple thousand in taxes over the last couple of years, they’re excited about getting that back.

 

MiBiz: What’s preventing companies from tapping these programs themselves?

Harrison: The number one roadblock is that your CPA is not your consultant in these areas. If you have a large firm, they may have an entire division devoted to finding tax incentives. We have 200 attorneys (in our network) and can tap them when needed.

A normal CPA is already buried up to their eyeballs with paperwork for their clients. People assume that their CPAs have a grasp of all the incentives that are out there, (but) almost every CPA says they know the programs are out there. They have been to a seminar and know about them, but are they taking it to the next level and able to file all the necessary paperwork? Standard CPAs don’t have time to dig into those areas without some help. We help the CPAs consult with their clients.

We don’t want Michigan businesses to lose money because of the disconnect that is out there.

MiBiz: The stimulus was a major campaign issue, with many business interests coming out in opposition to the ARRA. Are you encountering reluctance to take part?

Harrison: We hear that “we don’t want any of that Obama money.” There has been stimulus money out there as long as there has been a United States. Nobody paid attention until there was the economic downturn. Until the government came in with TARP and ARRA, no one paid much attention.

Many of these incentives came in the tax reforms of 1986. A lot happened in both Bush Administrations. Manufacturing incentives have been around almost as long as there have been manufacturers. The government makes (these incentives) extremely difficult to get. We have the expertise. That is not money that is out in the middle of nowhere. We are lowering the amount of money you are paying in.

We do have a challenge that customers have to know that there are incentives for them. Mileage is a deduction on a tax return. Now imagine if (the government) said that you have to have a 500-page technical report for that deduction — that is what we’re talking about.

MiBiz: Where do you see opportunities going forward?

Harrison: The manufacturing credits sunset at the end of the year. It is annually updated and used as a political bargaining chip. They never sunset, but it has always been threatened. President Obama himself said that he wants to make these credits permanent. He said that, but it hasn’t happened.

I see the hiring incentives as becoming increasingly important. With the economy and unemployment rate where it is, the government really wants to be seen helping improve the employment picture.

On the energy side, everyone under the sun knows energy is a hot button issue. Government is pushing a number of mandates about renewable energy, federal and state incentives are being talked about at various levels. We truly feel that energy will be at the top of the chart of things that we are going after for clients.


Featured in MiBiz Magazine
By Nathan Peck | MiBiz 

For Full Article Click Here