Terry McMillan gives an overview of federal tax credits

John McMillan

Thursday, May 5th, 2011

Terry McMillan of McMillan and Associates is back this week giving a general overview of what a tax credit is and the types of benefits a business can receive from tax credit programs.

Hi I’m Terry McMillan with McMillan and Associates. And today I'd like share with you overview of federal tax credits. These are programs enacted by Congress to help companies in the United States both locate here and also help them grow and develop.

For example, if your company is in an empowerment zone you can receive up to $3,000 per employee for every employee that works in the empowerment zone. This credit is also retroactive for three tax years. Another location credit is called the Indian Employment Tax Credit where if your company is located on current or former Indian reservation land and that's in any one of 33 different states in the United States, you could receive up to $4,000 per employee per year that credit is also retroactive for three tax years.

The Work Opportunity Tax Credit, if you hire in any one of nine different categories you could receive from $2,400 up to $9,000 if you hire an employee in any one of those nine categories. For instance, if they’re on Temporary Assistance to Needy Families, Food Stamps, welfare, ex-felons is a category; certain qualified veterans are categories in that. There's also an historic tax credit, there's an R&D tax credit for the research and development that you do in your company, plus you can also go into the low income housing tax credits or green or energy tax credits or you could receive up to a $1.80 per square foot that deals with energy conservation in your new building.

For more information contact us at www.MCATaxCredits.com. Thank you.

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