Monday, January 16, 2006

 

California Bankers Association Selects NTCG as Endorsed Incentive Tax Credit Partner

LONG BEACH, Calif. & SACRAMENTO, Calif.--(BUSINESS WIRE)--Jan. 4, 2006--The California Bankers Association (CBA) today announced that it has chosen National Tax Credit group, LLC, a provider of specialized interest income exemption, incentive wage, and sales/use tax credit documentation services to financial institutions of all sizes as its Endorsed Incentive Tax Credit Partner.

NTCG guarantees tax savings to all California banks through the utilization of the seldom utilized California Enterprise Interest exemption program, which allows banks to exclude the net interest income associated with loan activities to businesses located in designated business communities. NTCG can also generate significant wage credits (up to $10,000 per qualified employee) and equipment tax credits (up to 8.75 percent of cost) for financial institutions and their customers to the extent their headquarters, branches or service centers are located in any one of 41 different California Enterprise Zones or in any Federal incentive zone, such as Empowerment, Revitalization, Renewal, or Tribal Land Zones.

"NTCG is uniquely positioned to help California banks identify significant, previously unrealized, tax benefits," said CBA's chief marketing officer Bill Murphy. NTCG co-found Blake Christian said "Only a limited number of banks in California are claiming any of these benefits. Even smaller community banks can easily generate annual benefits in the $100,000 range and larger banks consistently generate benefits in excess of $1,000,000. Almost all California business lenders can benefit from the interest exemption."

NTCG's high-tech approach to identifying and fully documenting all exemptions and credits relies on a state-of-the art software/database developed by Swenson over the past four years at a cost of more than $2 million. Blake Christian, who is also a partner in one of the largest CPA firms headquartered in California, said "Even on our largest projects, which includes Fortune 500 companies, it is rare for the client personnel to spend more than 16 hours on the entire project. By simply obtaining electronic files of branches, loan addresses and employees, NTCG's software and personnel handles virtually all aspects of documenting refunds for the current year, as well as the prior four years."


Sunday, January 15, 2006

 

Locating a Business in an Enterprise Zone Can Make a Difference

By Erica Karras, TMA, LLC

Business owners everywhere weigh the pros and cons of traffic flow, competitive presence, and even parking availability to help determine the best location for their business. However many more business owners are completely unaware of a nationwide incentive program that could equate to thousands of dollars worth of annual tax savings, available by simply choosing the “right” business site.

To encourage new business development within the state, California has created the Enterprise Zone program or EZs. These EZs, offer substantial state tax credits and deductions to businesses located within these 39 (soon to be 42) designated areas. Benefits include hiring credits, sales and use tax credits, deductions for qualified equipment, a net operating loss carryover for up to 15 years, and net interest deductions for lenders making loans to EZ businesses.

Even though businesses may initially be attracted to these EZ’s for the numerous benefits, very few businesses actually take full advantage of this program. Blake Christian of NTCG, attributes the failure of businesses to fully capture the program’s benefits to “general confusion among business owners and their tax preparers, and a belief that their employee base does not fit the EZ qualification criteria. In fact, we generally find that a minimum of 15% of white-collar workforces are eligible and up to 45% of manufacturing employees are eligible.

Another reason for non-participation may be that some businesses are not aware that one or more of their facilities is located within an Enterprise Zone. For example, an article in the Long Beach Business Journal stated that the city’s Enterprise Zone hosts more than 7,000 businesses “though many do not participate in the program.” Blake Christian of NTCG conservatively estimates 60 to 70 percent of eligible businesses are not claiming these credits.

It has also been suggested that some businesses may feel that participation in such a tax-savings program may target them for tax audits. The California Franchise Tax Board denies this. With over 17,000 credit vouchers issued since 1992, Ray White, Community Development Analyst with the City of Long Beach, has not seen any evidence to substantiate that belief.

Often confused for a deduction, which only reduces your total taxable income, a tax credit is a direct one-to-one reduction off your annual state tax bill. The EZ program allows for up to $10,000 credit or more per qualified employee per year and as high as $32,000 or more per employee for a five-year period.

In addition to California’s EZ program, 37 other states have programs with varying levels of tax breaks. There are also a number of federal programs that offer wage credits ranging from $1,500 to $8,500 per qualified employee.

In order to streamline the analysis of business facilities and employees eligible for these numerous federal and state programs, National Tax Credit Group, LLC (NTCG) has developed a patent-pending software solution, TaxOvation™, which enables companies to quickly and accurately identify numerous state and federal tax credits.

National Tax Credit Group is so confident in its ability to identify incremental federal and state credits they promise guaranteed results. “If we don’t save you money, you don’t pay for the screening,” says Richard Perez, Co-Founder of NTCG.


Friday, January 06, 2006

 

How NTCG Can Help You

NTCG is a technology-based consulting firm that provides services for state and federal tax incentives. Please visit www.ntcgtax.com for more information.

Did you know that 90% of businesses either completely overlook or significantly understate their Federal and State tax credits? These credits can offer current year tax savings, prior year refunds and earnings per share improvement.

NTCG can help you get these credits. NTCG’s tax credit findings are rarely less than $100,000 and average over $250,000 per taxpayer.

This blog will include commentary on enterprise zones, federal and state tax incentives.

-Rajiv Vallabhaneni, Director of Technology, NTCG

 

Federal and State Tax Credits

At NTCG, we provide consulting services for the following Federal and State Incentives.

Federal Incentives:

State Incentives (for all states):

 

Enterprise Zone Credits For Your Business with NTCG's Help

NTCG is a technology-based consulting firm that provides services for state and federal tax incentives. Please visit www.ntcgtax.com for more information.

At NTCG We Work With:

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