Benefit from available tax credits and deductions. A trusted firm can help you maximize tax savings.
Improve Your Organization’s Financial Health
Tax credits and deductions help organizations save cash and keep more of their revenue invested in their business. The challenge for taxpayers is knowing what tax incentives exist and how they can qualify.
Increase your organization’s cash flow by benefiting from available tax credits and deductions
Reducing your organization’s tax liability is a valuable tax planning strategy that directly impacts your bottom line and increases cash flow. The benefits of the many available tax credits and deductions for business owners can be substantial. However, it can be confusing to know what you qualify for and how to claim the correct amount. This confusion prevents many businesses from maximizing their tax saving opportunities.
Specific Business Credits & Incentives
The U.S. government, and many states, offer a variety of tax incentives for organizations to benefit from. Don’t leave money on the table by not claiming those you qualify for.
These tax incentives include:
- Research & Development Tax Credit – incentive designed to reward innovation and development, including improvement of products and processes
- Energy Efficiency Incentives - includes New Energy Efficient Home Credit (Section 45L) and Commercial Buildings Energy-Efficiency Tax Deduction (Section 179D) - these incentives reward building and renovation of energy-efficient projects
- Carbon Capture Sequestration Credit (Section 45Q) – incentives for capturing and storing carbon produced to reduce emissions in the air
- Clean Energy Investment Credits (Section 48) – incentives for installing solar, wind, geothermal, fuel cell, energy storage, biogas, microgrid controllers and combined heat and power energy property
- Employee Retention Credit (ERC) – incentive for eligible employers whose businesses have been negatively affected by COVID-19 to keep employees on payroll
- Export Tax Incentives: FDII and IC-DISC – export incentive for U.S. manufacturers and distributors with foreign sales
- Clean Energy Production Credits (Section 45) - incentive for electricity produced from wind, open and closed-loop biomass, geothermal, landfill gas, and trash facilities, among others
- Low Income Housing Credit (Section 42)
- Cost Segregation - accelerate building depreciation deductions and increase cash flow opportunities
- Fixed Asset Services - for savings throughout the lifecycle of your building asset
The Inflation Reduction Act enhanced existing energy efficiency incentives to encourage sustainable building projects. Because many of these incentives are uncapped, some estimate that the total incentives given could be up to $800 billion over the next ten years.
Starting in 2023, tax-exempt organizations can benefit from energy incentives in the Inflation Reduction Act. This includes hospitals, higher education, senior living, K-12 institutions and nonprofit organizations.
ESG Best Practices
Forward-thinking businesses are increasingly embedding Environmental, Social and Governance (ESG) considerations into their tax strategy. As the government continues to incentivize sustainable and societally beneficial business practices, those who don’t include ESG and other sustainable initiatives in their tax strategy may be at a competitive disadvantage.
ESG and Sustainable Incentives
With the passing of the Inflation Reduction Act, more taxes, credits and other incentives were added to the Internal Revenue Code. Environmental incentives that businesses should consider include:
- Energy-efficient commercial building property deduction
- Energy-efficient residential property credit
- Soil and water conservation and endangered species recovery expenditures
- Renewable electricity production credit
- Plug-in electric vehicle credit
- Alternative fuel vehicle refueling property credit
- Enhanced oil recovery credit
- Energy conservation subsidies
Why Choose Eide Bailly for Your Business Credits & Incentives Needs
Partner with a trusted accounting and consulting firm to ensure that you maximize the potential of all tax credits and deductions, along with the proper accounting and compliance requirements. Eide Bailly is a reputable firm whose advisors are knowledgeable and experienced in business tax planning strategies to help organizations increase cash flow.
Our tax team is the number one accounting firm for energy efficiency incentives. We are supported by the National Tax Office who stay informed on legislative and tax code changes. We help clients across all industries with specialized, complex tax situations and make sure they benefit from all available tax savings opportunities. We save our clients millions of dollars in tax savings annually.
Why Choose Eide Bailly?
- Top 25 CPA Firm
- Number one accounting firm for energy efficiency incentives
- Multi-industry expertise
- A team of tax incentive specialists who know how to work with each individual credit and deduction
- Experience with thousands of studies and opportunities, resulting in millions of dollars of tax savings for our clients each year
What Our Clients Say
Besides deferring taxable income, the best thing about the cost segregation study process with Eide Bailly is that it’s seamless. I stay busy, and there’s no interruption in daily business, there’s no large time commitment required on my part, and it’s a totally seamless transaction. Anytime we purchase a commercial property, Eide Bailly is part of the process."
Eide Bailly came and helped us understand what could and what should go into our tax credits. The first year they did it with us, it was four times the size of our previous year’s tax credit."
As a small business, we need every legitimate tax benefit that is available. The tax savings from the R&D credits that Eide Bailly helped us receive allow us to invest in new product development while keeping our profit margins at our targeted amounts."
"The tax deduction is the ultimate benefit of the 179D deduction, but the most substantive thing about going through the process with Eide Bailly was that they did all of the heavy lifting. I do construction, and that's where my time is most effectively applied. I'd prefer not to do accounting exercises. Eide Bailly was explicit in telling me exactly what they needed from me so I could be very efficient in getting information to them. Then they did all of the work so that I didn't have to take time away from my day-to-day duties."
The smaller CPA firms we have worked with previously have not been equipped to tackle opportunities or challenges we have faced. Eide Bailly has the resources and expertise to help us with the more complex issues that come up, and I'm happy we have them to face upcoming issues together."
How Eide Bailly's R&D Team Saved This Company Four Times Their Previous Credit
See how Tige Boats utilized Eide Bailly’s R&D team for maximum benefit.
Business Tax Incentives 101
What types of tax incentives are there?
There are several types of tax credits and tax deductions businesses can claim. Each has a slightly different set of qualifications and benefits based on the type of project an organization is undertaking. Some available tax credits are permanent, while others expire and may be reinstated. The government also offers various tax credits for sectors such as education, energy efficiency and cybersecurity.
What is a tax credit?
A tax credit is an incentive provided in the tax code. Tax credits directly reduce your tax liabilities and they provide an incentive for investing in a particular industry or activity. Businesses can claim both state and federal tax credits.
Tax credit vs. deduction
The difference between a tax credit and deduction can be confusing, leaving many people with questions. Tax credits reduce tax liability dollar for dollar, whereas tax deductions reduce taxable income.
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