5 Business Tax Incentives You Didn’t Know About
Many businesses operate on a tight margin. When it comes to maintaining a profit for the year, tax incentives and tax credits can be significant. When planning your business expenses and preparing to file your tax returns, keep these five tax incentives in mind.
Workforce Training Fund
The state of Idaho offers a workforce training fund that reimburses businesses for the expenses related to training workers. The training costs that are reimbursed must be related to expanding the skills of employees who would otherwise be at risk of losing their jobs. This funding is also available for businesses that are relocating.
Work Opportunity Tax Credit
The Idaho Work Opportunity Tax Credit provides incentives to small businesses that hire workers who are difficult to employ. This includes people with cognitive disabilities, welfare-to-work recipients and people with a felony conviction. You can get tax credits for each employee who qualifies under this program.
Idaho Tax Reimbursement Incentive
The Idaho Tax Reimbursement Incentive is a performance-based incentive for small, emerging and growing businesses. This incentive features a tax credit of up to 30 percent for up to 15 years on new state tax revenues. Your business may qualify for these tax credits if you are seeking to expand in or relocate to the state of Idaho. You must be adding new, qualifying jobs to receive this incentive.
Idaho Business Advantage
The Idaho Business Advantage program may provide you with a variety of incentives, including tax credits, rebates on sales tax for items you purchase for business use and exemptions from paying part or even all of your business property taxes. This program is available to businesses that invest a minimum of $500,000 in new commercial or industrial facilities and create at least ten new jobs that pay an average of $40,000 per year. The jobs must also provide complete benefits to employees, including health care.
Investment Tax Credit
Your business could qualify for an investment tax credit of up to 3 percent. This tax credit applies to all new tangible personal property that depreciates over time. The tax credit can be applied to purchases of machinery, electronics and equipment used for business in Idaho.
These five tax incentives are designed to help your business succeed. Many of these options will also help your business to save more money in the future. You can implement one of these incentives at a time or try them all for maximum impact on your business’ finances.