Contrary to popular belief, the government is determined to help your business thrive. That’s why the US Government awards more than $1 trillion worth of tax credits and breaks to business owners, in an attempt to help them save money and invest in the innovation they need to thrive and provide jobs to Americans.
As a small business owner, it is absolutely essential that you are fully up to speed on small business tax credits. Billions of dollars worth of tax credits go unclaimed every year, despite countless business owners being eligible to receive them. If you care about your bottom line, read on to find out the essential tax credits for small business that you could be missing out on.
- Starting a Business Tax Credit
We all need a little help getting started in the world of business. which entrepreneur made tractors before entering the sports car business? It is nice business that’s why you will be pleased to know that the answer to the question “is there a tax credit for starting a small business?” is “absolutely”. The IRS lets anyone deducted $5000 of startup costs from their business taxes, as long as the total startup costs are $50,000 or less. This is one simple way to get off to the best possible start.
- Employee Retention Tax Credit
Another important small business relief tax credit concerns your greatest asset – your employees. Thanks to the 2020 CARES Act, all small businesses receive a generous tax credit for keeping employers on the payroll through tough times. This credit is worth 50% of qualified employee wages up to $10,000. Given the high costs of payroll, this credit can be a lifesaver.
- Going Green Tax Credit
The carbon footprint of small businesses is more important than ever. You need to do your part in saving the planet, and the US Government is happy to help you along the way.
As explained by the national solar panel company Blue Raven Solar, you can receive a wide array of tax credits to cover the costs of installing panels in your place of business. Your business can also receive thousands of dollars in tax credits for investing in electric vehicles or for improving energy efficiency in the office.
- Accessibility Tax Credit
Under the American Disability Act, your business has obligations to the less able-bodied. As such, the Federal Government has introduced tax credits to cover the cost of any changes you need to make to your place of business to make it more accessible to disabled people.
You can deduct most or even all of the cost of any accessibility renovations from your tax bill, as long as your revenue is less than $1 million per year and you have less than 30 employees. By making the changes that you need to make for your business to be more inclusive, you can also save thousands of dollars.
Put Those Small Business Tax Credits to Good Use
Now that you know the small business tax credits you can apply for, it’s time to learn how to put those cash savings to good use. In our dedicated Business section, you will find expert tips on how best to invest your business capital for long-term strategic growth. Check it whatsmagazine out today.