Monday, January 16, 2006
California Bankers Association Selects NTCG as 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
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
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
- Empowerment Zone Employment Credit – Credit up to $3,000 per existing or new employee who lives and works in the Empowerment Zone.
- Work Opportunity Tax Credit (WOTC) – Credit up to $2,400 per new hire from groups that have high unemployment rates or other special employment needs including youth.
- Welfare to Work (WTW) Credit – Two-year credit up to $8,500 for businesses that hire long-term family assistance recipients.
- Renewal Community Employment Credit – Credit up to $1,500 for businesses that hire employees that live and work in the Renewal Community.
- Federal Free Trade Zone Benefits – numerous port and other jurisdictions contain very valuable “Free-Trade” zones, which allow taxpayers to defer the payment of duties and customs until the inventory is transferred outside the zone.
- Native American Employment Credit – Credit up to $4,000 for businesses that hire Native Americans that live and work on tribal lands.
State Incentives (for all states):
- Wage credits – up to $10,000 per year in certain states, per qualified employee
- Sales/use tax credits – up to 8.75% of cost in certain states
- Property tax savings for real and personal property
- Other Income and Franchise Tax “Holidays” and reductions
Enterprise Zone Credits For Your Business with NTCG's Help
At NTCG We Work With:
- All businesses with one or more locations in any federal or state tax incentive zone
- Accounting/ CPA Firms – as back-office support to deliver this unique and value-added service to their clients
- Payroll Companies and Staffing Agencies – as technology partners to integrate our patent-pending software and enable superior servicing of their clients located in any of the 39 states that currently have Enterprise Zone programs
- Banks & Other Lending Institutions – to identify loans made to qualifying businesses in Enterprise Zones (eligible for tax exclusions in certain states, and useful in marketing efforts).
- Chambers of Commerce and Trade Associations – to ensure their members take advantage of all the tax credits and incentives they are entitled to secure.