Tax Credit and Training Gold Mine
Terry L. McMillian
Georgia Employers - "How much money do you like to leave on the table?" Most employers will say, "Absolutely None!!!!!" Yet, many of those same employers collectively leave literally millions of dollars on the table every year by not availing themselves of the multitude of Georgia tax credits, training and other incentives that are available to their companies.
Would you like to tap into a source of funding that can directly contribute to your bottom line profit, as well as provide a large portion of your training budget? A wealth of funding and training assistance, a literal "Gold Mine", is waiting and available for your company! Yes, it takes a little effort, but this small effort can produce big dividends.
The State of Georgia has available funding, tax credits, training assistance, and other incentives specifically earmarked for industry to encourage business growth, expansion, and economic development. This assistance has been provided through the Business Expansion and Support Act of 1994, HB 1527. Virtually every qualifying company can apply for and receive some type of tax credit and/or training assistance, which will have a positive impact on their bottom line profit. Georgia has these three main objectives for these incentive programs:
- Attract businesses to Georgia;
- Encourage business to remain in Georgia; and,
- Assist and encourage existing business to grow and expand in Georgia.
Here is a representative sample of Georgia Tax Credits and other incentives. As you read this list, ask yourself how many of these programs could your company use for their profit.
- New Employee Training
- Creation of New Jobs
- Retraining Tax Credit
- Investment Tax Credit
- Research and Development Tax Credit
- Small Business Growth Tax Credit
- Basic Skills Tax Credit
- Pre-Employment Training
Of course, the State of Georgia requires that you meet certain criteria and that you complete their documentation. However, this is all minimal when you consider the funds and assistance that are available. How does a 180% return on your investment of time sound to you? That number is typical of the amount of tax credits and other incentives that come back to a company from their time invested. E-Commerce and Dot.com companies are especially favored when it comes to these programs that is an excellent way to defray start-up costs. Anytime your company installs a new piece of equipment, hires additional people, puts on a new shift, expands their present facilities, buys another company, or builds a new plant, there are several incentives and tax credits available.
Georgia's retraining tax credit program, for example, will allow a company to recover up to 50% of their training costs for approved programs through tax credits. Other incentives include receiving up to $4500 in tax credits for each new employee.
Benefits to Companies
How do companies benefit from pursuing and receiving the available tax credits and incentives from Georgia tax credit programs? Here are several benefits that make the whole process worthwhile:
· Increase in Bottom Line Profits
· Recover Funds from Previous Years
· Increased Employee Skills
· Improved Employee Retention
· Improved Employee and Business Performance
Georgia Employers - Would you leave $50 - $100K on the table at tax time because you did not want to take the time to investigate your eligibility for tax credits and other government incentives?????
Here are some actual examples of Georgia companies that have received these tax credits and incentives:
- A $2MM company with 12 employees was able to secure $48K in tax credits.
- A $10MM company with 100 employees was able to secure $155K in tax credits.
- A $100MM company with 900 employees was able to secure $1.3MM in tax credits.
Generally, a company will spend 30-40% of what they receive in tax credits in time and resources to acquire these credits. Another option is to outsource to a consulting company to do the required documentation and work.
The Tax Credit and Training Gold Mine is available and waiting for you to invest your time and effort to receive a big return for your company!!!
About the Author: Terry McMillian is the President and Founder of McMillian & Associates, Inc., a firm that assists companies with identifying and receiving government tax credits and incentives. In addition, his firm does custom Safety, technical, and non-technical Industry training. Terry can be reached at 706-884-5197, 706-302-7725, or through email at mcmassociates@mindspring.com.
Note: This article appeared in the November/December 2001 issue of TechLinks Magazine, page 59
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