Credits & Incentives
Our CPAs help you understand corporate tax incentives for a range of industries.
The Anchin Tax Credits and Incentives Group is committed to helping clients take advantage of the many incentive programs offered by federal, state and local government agencies. These programs enhance economic development by spurring companies to make business investments and to create and retain jobs, thus promoting neighborhood commercial activity and strengthening the economy.
Our specialists identify companies that are eligible for these business incentives and assist them through the complexity of government programs. The group works with a wide range of tax and business incentive programs to deliver tangible benefits. Millions of dollars are awarded annually to companies in the Tri-State area through economic development incentives. These opportunities translate to significant tax savings, many resulting in substantial refunds or credits.
Don’t leave money on the table: Anchin’s Tax Credits and Incentives Group can analyze your current situation and help you obtain and maximize valuable incentives.
If your business or client is performing Research & Development, contemplating relocation, expansion, building new facilities, or hiring additional employees, Anchin’s Tax Credits and Incentives Group can identify what government incentives the company may be eligible to receive.
Current tax credits and incentives programs:
- New York City economic development programs
- New York State Empire Zone Program (EZ)
- Industrial Development Agency (IDA)
- Benefits Industrial and Commercial Incentive Program (ICIP)
- Industrial Relocation Grant Program (IRG)
- Relocation and Employment Assistance Program (REAP)
- Rent abatement for commercial and industrial tenants Energy Cost Savings Program (ECSP)
- Low interest loans
- The State of New York economic development programs
- New York State Excelsior Jobs Program
- New York State Energy Research and Development Authority (NYSERDA)
- New York State Empire Zone Program (EZ)
- Industrial Development Agency (IDA Benefits)
- New York State Capital Grants Programs Manufacturing Assistance Program (MAP)
- Qualified Emerging Technology Company credit (QETC)
- Low Interest Loans
- Research and development tax credits
- Federal research and development tax credits
- State research and development tax credits
- Federal Employee Retention Credit (ERC)
- Federal Section 179D Tax Deduction on Energy Efficient Buildings
- Hiring credits
- Work Opportunity Tax Credit (WOTC)
- Empowerment Zones
- State hiring credits
Timing is everything. A day early is better than a day late. The most critical component to these programs is applying before your contract or lease is signed, or permits are pulled.
Research and Development
We recognize the role R&D plays in the success of our clients’ businesses, and we strive to ensure that our clients develop and implement a strategy that enables them to receive the financial benefit they deserve along with the sustainability they need. Correctly calculating your research credits is critical because they can be used to lower your company’s effective tax rate. For companies in net loss positions, the federal R&D tax credit may be carried back one year and carried forward for 20 years until it can be used.
The key to accurately calculating R&D tax credits is distinguishing between qualified and nonqualified research activities and expenses. The distinction often is subjective, and may be based on how a company’s accounting and project management systems allocate activities and expenses. As a result, many allowable expenses can be overlooked by taxpayers. Anchin’s fashion industry R&D team is skilled in reviewing such systems and redesigning them to better capture qualified expenses. For example, many project management systems incorrectly allocate the time top management spends on projects or fail to include contractor expenses.
Orphan Drug Tax Credit
The orphan drug tax credit (ODC) is a federal tax credit available to pharmaceutical companies working to find cures for certain rare diseases. Before claiming the ODC, the drug or therapy developed by the taxpayer must be given an Orphan Drug designation by the Food and Drug Administration.
The Tax Credits and Incentives team at Anchin helps clients assess their ODC and other tax credits to ensure that maximum benefit is received. Anchin works with clients interested in claiming the credits for the first time, and clients who have difficulty meeting the contemporaneous documentation requirements needed to support their claims.
More than 100 separate successes, including:
A Long Island, NY distributor saved an estimated $7 million over a 10-year period on a $14 million property purchase by accessing complimentary incentive programs, including IDA, Excelsior Jobs, and Energy Cost Savings programs.
An upstate designer and manufacturer in Orange County, NY, pending Empire Zone certification in two locations, will access investment tax credits for new facilities, adding jobs in Orange County.
A food manufacturer in Brooklyn, NY received tax credits of $2.3 million over two years, with 50% refundable to reinvest in the business.
A manufacturer and distributor in Long Island, NY received a $250,000 discretionary grant from MAP to improve retention and manufacturing operations, processes. Team has also initiated site selection process, using cost value analysis to compare sites statewide.
A life sciences company in Massachusetts received $1,300,000 in Federal R&D Credits and $265,000 in MA State R&D Credits.
A LED manufacturing company in Long Island, NY received $6,000,000 in Federal R&D Credits and received $2,000,000 with multiple State R&D Credits.