It is a proven fact that more than 50% of credits and incentives go unclaimed annually. Marcum wants to ensure that these opportunities are never missed. Our professionals have extensive experience identifying and securing credits and incentives in every industry segment.
Marcum's Tax Credits and Incentives Services practice can help your business reduce costs, generate refunds and provide the advice to unlock and secure favorable incentives packages. We can help identify tax and non-tax savings opportunities for job creation, research, training and other qualified expenditures.
Busy companies can overlook non-traditional methods to reduce costs. When operations and the general business climate run at lower levels, opportunities present themselves to utilize tax incentives that impact the bottom line by:
- Avoiding paying unnecessary taxes.
- Obtaining immediate tax refunds.
- Reducing operational costs.
- Improving earnings before interest and tax, net income and shareholder value.
- Enhancing the economic value of company initiatives.
As the CFO or top financial executive, you are called upon daily to effectively manage the use of capital by your organization. An often over looked idea that can provide an enormous benefit to your company is the research and development tax credit. This credit reduces current taxes and secures a refund of previously paid taxes, providing more cash to invest in your business.
At Marcum LLP, we are specialists who investigate Research and Development Tax Credits. Many organizations claim less benefit than they are entitled to or, even worse, believe that they do not qualify because their main business is not research and development. In addition, many states have enacted generous credit programs, some of which are refundable even if you have not paid taxes. Why miss out?
Over the past few years, legislative changes ave expanded the opportunity for many industries to qualify and claim the research credit. Through the research credit, many state and federal governments are providing subsidies for your investment in a product or a process to remain competitive.
DOWNLOAD BROCHURE- Investing in resources for new products or for improving products.
- Investing to develop new or improved manufacturing or service processes.
- Attempting to improve manufacturing efficiency, reduce scrap and implement techniques such as "Lean", "Green" and "Kan-Ban."
- Have Existing or Patents Pending.
- Can provide a source of capital through significant cash refunds of previously paid federal and state taxes. Can reduce your current tax expense, freeing up capital for investment in business, product development and reduction of debt.
- Will make your business more valuable to potential investors or acquirers.
- Alternative Minimum Tax (AMT) relief - $50 million and under ( average sales).
- Payroll tax expense refund/reduction.
- State governments have enacted generous credit programs to attract world class businesses. Many of these state credits are refundable regardless of whether taxes were paid or not. Additionally, some allow their credits to be sold.
*States have unique qualifying limitations.
Construction Services
- $1B Construction Management – Saved over $1.0 million
- $200M Construction Services – Saved over $200,000
- $40M Mechanical Contractor – Saved over $60,000
Consumer Products and General Manufacturing
- $75M Food manufacturing company – Saved over $700,000
- $50M Bakery – Saved over $150,000
- $15M Specialty game manufacturing – Saved over $75,000
- $35M Consumer product design firm – Saved over $350,000
Architecture, Design & Engineering Service Firms
- $400M Architectural service firm – Saved over $400,000
- $75M Engineering service firm – Saved over $1.2M
Financial Services
- $75M Bank – Saved over $150,000
- $400M Financial services firm – Saved over $750,000
- $150M Specialty service bank – Saved over $200,000
Pharmaceutical and Life Sciences
- $30M Nutraceutical development and manufacturing company –Saved over $125,000
- Start up Pharma company – Saved over $200,000
- Start up in Pharma basic research – Saved over $300,000 in refundable state of NY Qualified Emerging
Technology Credits
- $10M Biomedical device manufacturer – Saved over $700,000
Software Development
- $12M software content designer and developer - Saved over $1.5M
- $25M software content designer – Saved over $350,000
- $75M specialty software content developer – Saved over $1.2M
- VC backed software content developer – Saved over $500,000
Every tax year, hundreds of millions of dollars are unclaimed by taxpayers from the U.S. Treasury, for specific "payroll-based" tax credits. These tax credits are available to all U.S. taxpayers that have employees who are paid via Form W2.
The Work Opportunity Tax Credit ("WOTC") is a payroll-based tax credit that is often overlooked. The process to claim the tax credit can be burdensome. To claim the WOTC, the taxpayer must hire a qualified employee from one of 10 target groups, and specific forms must be filed with the state's WOTC Coordinator within 28 days from date of hire. The credit amount can range from $2,400-$9,600/employee depending upon which target group the qualified employee is part of. Marcum's Tax Credit and Incentives Group provides all WOTC processing, vouchering and management to capture the credits. The TCI Group utilizes MarcumSecure, the Firm's encrypted information transfer system which ensures that data sent between Marcum and its clients is secure.
Example of WOTC Savings:
- Total New WOTC Hires: 10
- Total Average WOTC Credit Per Year: $2,400
- Total Current Year Tax Credit: $24,000
The Federal Empowerment Zone ("FEZ") Tax Credit was created in 1996 by the Clinton Administration. There are 40 federal Empowerment Zones located within the U.S. The FEZ credit has a history of expiring, retroactively being extended and extended again. Most recently, the FEZ expired on December 31, 2016 and is still awaiting extension. The FEZ was typically included in Congress's tax extender legislation in previous years. The Trump Administration has made no public comment on its view of the FEZ. There are amended return opportunities that may exist for the 2013-2016 tax years. The credit amount is equal to 20% of the first $15,000 in wages paid, being capped at $3,000 per employee, per year. The employer and employee must reside within the Empowerment Zone and the employee must work in the FEZ. Exempt businesses such as golf courses, gaming venues, and liquor stores are not eligible for this tax credit. Marcum's TCI group can determine whether your business is in the FEZ and estimate what your refund potential might be. Marcum's TCI group manages the entire process to capture all qualified tax credits for you and your business.
Example of FEZ Refunds:
- Total Employees in FEZ: 150
- Qualified FEZ Employees: 15
- Tax Credit Per Employee: $3,000
- Total Tax Credits Claimed Per Year: $45,000
- Total Credits per All Qualified Amended Returns: $135,000
Related News
June 03, 2019
As Seen In
Rhode Island Inno published an article by Providence Office Managing Partner James Wilkinson, about how start-up companies can use the federal Research and Development tax credit to improve cash flow.
IRC 41 is the section of the IRS Code containing the laws governing the federal Research and Development tax credit.
April 30, 2019
Press Release
Treasury Counselor Daniel Kowalski to Keynote Marcum-Raffa Conference on Social Impact Investing in Opportunity Zones
Daniel Kowalski, counselor to the Secretary of the Treasury, will be the keynote presenter at a special conference dedicated to impact investing in Opportunity Zones, ....
April 26, 2019
Tax Flash
IRS Issues Proposed Regulations on Qualified Opportunity Zones
The Treasury and IRS issued a new set of proposed regulations on Qualified Opportunity Zones last week, which provides additional guidance and offers considerably greater ....
April 01, 2019
As Seen In
The Mann Report published an article by Tax Partner Kurt Koegl about opportunity zone funds.
The Opportunity Zone program was enacted in December 2017 as part of the Tax Cuts and Jobs Act.
December 17, 2018
Tax Flash - Tax Return Compliance
Business Interest Expense Limitation under the Tax Cuts and Jobs Act of 2017
Interest deduction rules were significantly amended under The Tax Cuts and Jobs Act signed into law last December 2017. In early December 2018, the IRS ....
December 17, 2018
As Seen In
Bloomberg News quoted Mid-Atlantic Regional Partner-in-Charge of Tax & Business Services Edward Reitmeyer in an article about how to lower your tax bill before the end of 2018.
President Donald Trump pledged that his tax law would kill off breaks and complex loopholes for the wealthy. Instead, the overhaul has ushered in a ....
December 03, 2018
As Seen In
Long Island Business News quoted from the Marcum 2018 Tax Guide in an article about opportunity zones.
The Tax Cuts and Jobs Act of 2017 has had a major impact on accounting firms and their clients this year and it's only getting started.
November 15, 2018
As Seen In
Bloomberg Tax quoted Tax Credits & Incentives Leader Peter Downing in an article about economic inducements to Amazon for its new headquarters locations in New York and Virginia.
Depending on the extent to which the Long Island City facility relies on renewables, Amazon also may qualify for additional credits through the New York ....
November 14, 2018
As Seen In
The New York State Brewer's Association blog posted an article by Tax Partner William Kuhlman, about the advantages of the R&D tax credit for craft brewers.
Craft brewers that have not yet done so should consider whether investment in product development, formulations, recipes, techniques, and manufacturing processes may qualify for a ....
November 07, 2018
As Seen In
Accounting Today announced the availability of the 2018 Marcum Year-End Tax Guide.
Marcum LLP released its 2018 Year-End Tax Guide on Wednesday, providing advice to taxpayers and tax professionals about how to handle the Tax Cuts and ....
November 07, 2018
Press Release
Marcum LLP Releases 2018 Year-End Tax Guide: Reference Tool for Tax Planning
Marcum LLP today released its 2018 Year-End Tax Guide. This year's guide includes 17 chapters discussing how taxpayers are affected by the Tax Cuts & ....
September 17, 2018
Tax Compliance
Tracing of Interest Expense Related to Debt-Financed Distributions
When proceeds are received from a loan, there are various tax consequences depending on whether the borrower is the taxpayer or an entity owned by ....
June 04, 2018
Tax Reform
2018 Gift and Estate Tax Changes under the Tax Cuts and Jobs Act: Transfer More Wealth Tax-Free
The Tax Cuts and Jobs Act (TCJA) of 2017 introduced a wide array of changes to most areas of the tax law beginning with the ....
May 25, 2018
As Seen In
The New York Times quoted Partner Barry Fischman in an article about the 179D tax deduction for the construction of certain energy efficient building systems.
Over the past decade, hundreds of public projects have benefited from a federal incentive meant to encourage investments in energy‐efficient technology.
April 23, 2018
As Seen In
Newsday quoted national Tax Leader Joseph Perry in an article about the windfall to New York's U.S. Senators Chuck Schumer and Kirsten Gillibrand under the new tax law.
New York's Democratic senators - who publicly release their returns each year - will likely owe thousands of dollars less tax for 2018 thanks to ....
March 21, 2018
Tax Flash
Farewell to the Offshore Voluntary Disclosure Program: The IRS Pulls the Plug
In spite of its many iterations since 2009 and the 56,000 new taxpayers with their $11 billion added to Internal Revenue Service coffers, on September ....
March 19, 2018
As Seen In
Long Island Business News interviewed Tax Leader Joseph Perry for an article about the new tax treatment of stock options granted to executive employees earning more than $1 million.
While a corporate tax cut that brought the top rate down from 35 percent to 21 percent is widely seen as the centerpiece of the ....
March 13, 2018
As Seen In
Inc. magazine quoted Mid-Atlantic Regional Partner-in-Charge of Tax & Business Services Ed Reitmeyer in an article about errors in the new federal tax law that could cost taxpayers big money.
Many entrepreneurs have celebrated President Trump's signature legislative achievement, the 2017 Tax Cuts and Jobs Act, for decreasing their annual tax bills.
March 05, 2018
As Seen In
Financial Advisor magazine interviewed Greenwich, CT, Office Managing Partner John Mezzanotte for an article about the loss of certain itemized tax deductions under the Tax Cuts & Jobs Act of 2017.
Under the tax reform legislation passed by Congress late last year, several familiar itemized tax deductions have ceased for 2018, such as those for unreimbursed ....
February 27, 2018
Tax Flash - Tax Return Compliance
FASB's Q&A Guidance on the Impact of Tax Reform on Financial Accounting
After the Tax Cuts and Jobs Act was passed, concerns were raised to the Financial Accounting Standards Board regarding implementation of certain provisions of the ....
February 23, 2018
As Seen In
The New York Times quoted national Tax Leader Joseph Perry in an article discussing the complexities and confusion created by the Tax Cuts & Jobs Act, and the likely battles yet to come in Congress.
Never mind that once in a generation tax bill that just passed last year. Congress is headed for years more of big fights over taxes, ....
February 21, 2018
Tax Flash - Tax Return Compliance
The Impact of Tax Reform on Financial Accounting
On December 22, 2017, the Tax Cuts and Jobs Act, was signed into law. The Act will have a significant impact on financial reporting issued ....
February 19, 2018
Tax Incentives
Commercial Building Energy Tax Incentive Extended for 2017
Early in the morning on February 9, 2018, to avert an impending government shutdown, Congress passed a large omnibus budget titled the Bipartisan Budget Act ....
February 16, 2018
As Seen In
Long Island Business News wrote about the advice Marcum panelists gave to businesses considering restructuring as C-corps, during the Firm's recent tax reform seminar in Melville.
Much of the Marcum seminar focused on the taxation differences between C‐corps and pass‐through entities, which include partnerships, S‐corporations, limited liability companies and sole proprietorships.
February 15, 2018
Tax Flash - International Taxation
New IRS Directives Issued for Transfer Pricing Examinations
On January 12, 2018, the Large Business and International Division of the Internal Revenue Service issued five directives which provide instructions on how IRS agents ....
February 13, 2018
Tax Flash - Tax Return Compliance
Bipartisan Budget Act of 2018
The Bipartisan Budget Act of 2018, enacted last Friday, February 9, contains a number of tax breaks for both individuals and businesses. These include the ....
February 12, 2018
As Seen In
The Hartford Business Journal quoted Connecticut Tax Partner-in-Charge Brett McGrath, in an article about the impacts of the Tax Cuts & Jobs Act of 2017.
More than 30 years after digesting the last major federal tax overhaul, Connecticut accountants and legal advisers working to interpret the latest changes to the ....
February 09, 2018
As Seen In
CNBC quoted Tax Principal Michael D'Addio in an article about adjusting paycheck withholdings to comply with the new tax rates for individuals.
In January, the Treasury Department released its income tax withholding tables, updated to reflect changes stemming from the Tax Cuts and Jobs Act. The new ....
February 05, 2018
As Seen In
Bloomberg News quoted Ed Reitmeyer, Mid-Atlantic Regional Partner-in-Charge of Tax & Business Services, in an article about tax strategies for owners of pass-through businesses under the new tax law.
If exploiting a tax loophole is as much an art as a science, then the tax planning profession is poised for a creative renaissance. The ....
January 31, 2018
As Seen In
Workandmoney.com interviewed Tax Partner Diane Giordano for an article about what the new tax law means for small businesses.
The new tax law became both the beauty and the beast for companies of all sizes across the country when 2018 officially opened for business.
January 30, 2018
As Seen In
Fox Business spoke with Tax Principal Michael D'Addio about the need to adjust paycheck withholdings under the new tax law.
As employees begin to receive their updated paychecks based on the new tax code changes, many are seeing incorrect withholding amounts, which could lead to ....
January 30, 2018
As Seen In
Long Island Business News reported on the Marcum tax panel the publication's editor is co-moderating with Melville Office Managing Partner Carolyn Mazzenga.
Long Island Business News Editor Joe Dowd and Marcum Melville Office Managing Partner Carolyn Mazzenga are set to moderate a series of panel discussions tonight ....
January 30, 2018
As Seen In
Bloomberg’s Talking Tax podcast invited Tax Principal Michael D’Addio onto the show for a discussion about whether the new tax law will drive pass-through entities to convert to C-Corporation status.
The new tax law lowers the corporate tax rate to 21 percent—a change that some lawmakers have suggested could prompt pass-through entities to convert to ....
January 29, 2018
As Seen In
Long Island Business News quoted State & Local Tax Leader Paul Graney in an article about options New York State is considering to counter the regional tax impact of the federal Tax Cuts & Jobs Act.
Facing new federal rules that limit state and local tax deductions, New York and California are considering options to give their residents a big federal ....
January 29, 2018
As Seen In
CFO.com published an article by Tax Leader Joseph Perry and Tax Principal Michael D'Addio, discussing the pros and cons of C-corporation v. pass-through entity status under the new tax law.
A 21% income tax rate might sound appetizing to some pass-through entities, but C-corporation status doesn't suit every organization.
January 24, 2018
As Seen In
Associated Press quoted Tax Principal Michael D'Addio in an article about how small businesses are capitalizing on the new tax law.
Although there are still many unknowns about the tax law that took effect Jan. 1, some small business owners have already figured out that they ....
January 19, 2018
Tax Flash - State & Local Taxation
U.S. Supreme Court Will Hear South Dakota's Sales Tax Case
On January 12, 2018, the United States Supreme Court decided that it will hear a South Dakota case (State of South Dakota v. Wayfair Inc., ....
Contacts
Select the region to view contacts.
The Marcum 2018 Year-End Tax Guide continues our tradition of providing timely tax guidance for the upcoming year.
Marcum LLP is one of the largest independent public accounting and advisory services firms in the nation, with offices in major business markets throughout the U.S., as well as Grand Cayman, China and Ireland.
DOWNLOAD THE MARCUM ON THE GO APP
