Tag: Stimulus

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.

The Medical Industry and Tax Credits

What if you were told that you as a Health Care Provider could receive funds for medical equipment, devices, computers, furniture, and other office or medical equipment?  You would ask, “How?’.  It is a simple process of taking advantage of tax incentives and credits made available specifically to your industry.

The most immediate reply to this statement is, “If it is that simple, why have I not heard about this before?”.  Simply put, tax incentives and credits are confusing and most CPA’s are unable to fully capture the available incentives and credits for their clients.

Successful health care providers, from individual practices to large entities, are constantly faced with the decision of when and how to invest in their own businesses.  The most important factor being, the total cost of the investment, including the potential tax benefits.

Tax Incentives / Credits Every Medical Facility Owner Should Consider

  • Cost Segregation
  • Section 179 D
  • Property Tax
  • Historical Tax Credits
  • Section 45L Tax Credit
  • R&D Tax Credits
  • Hiring Tax Credits

This is just a short list of possible tax incentives and credits available to Health Care Providers.  The easiest way to determine if your organization would qualify for tax incentives or credits 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.