Terry McMillan defines tax credits

John McMillan

Friday, June 3rd, 2011

Terry McMillan is back and this time he's here to talk about what exactly tax credits are, how they are used, and how your business can benefit from them.

Hi I’m Terry McMillan with McMillan and Associates, and I'd like share with you today what are tax credits? How are they used? Were they developed the first place? Tax credits are a means by which the local and state and federal governments provide incentives to businesses for certain activities. Tax credits are a dollar for dollar credit against your liability, so they're much better than those deductions, the deductions are only a percentage, were a tax credit is a dollar for dollar against your tax liability.

These tax credits enable states to compete with each other, just like you have competition, states have competition as well. How do different states compete with each other? One of the ways is how much they offer tax credits. What they want to do is attract new business to the state, they want to help keep businesses in the state and they want to help the company develop and expand in their state. All of which provides additional revenue to that particular state and in order for you to locate or expand or stay in that state, but give you some incentives to do that and those incentives are through their tax credits.

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

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