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)
- Low Interest Loans
- The State of New Jersey economic development programs
- Business Employment Incentive Program (BEIP)
- Urban Enterprise Zone (UEZ)
- Business Retention and Relocation Assistance Grant (BRRAG)
- Clean Energy Program (NJCEP)
- New Jersey Economic Development Authority (NJEDA) Brownfield Redevelopment
- Technology Business Tax Certificate Transfer Program
- The Federal Renewal Community Program
- Research and development tax credits
- Federal research and development tax credits
- State research and development tax 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.
- R&D Tax Credits Case Studies: Architecture/Engineering/Construction
The following are two examples of client development efforts in the A/E/C industry which further illustrate the types of projects and activities that will potentially qualify
- R&D Tax Credits Case Studies: Chemicals
The following are two chemical company case studies which further illustrate the types of projects and activities that will potentially qualify for the R&D tax
- R&D Tax Credits Case Studies: Life Sciences
The following are two case studies which further illustrate the types of projects and activities that will potentially qualify for the R&D tax credit. The
- R&D Tax Credits Case Studies: Financial Services
The following are two case studies which further illustrate the types of projects and activities that will potentially qualify for the R&D tax credit. The
- R&D Tax Credits Case Studies: Manufacturing and Distribution
The following are two examples of client development efforts in the manufacturing and distribution industry which further illustrate the types of projects and activities that
- R&D Tax Credits Case Studies: Medical Devices
The following are two medical device company case studies which further illustrate the types of projects and activities that will potentially qualify for the R&D
- R&D Tax Credits Case Studies: Technology
The following are two examples of client development efforts in the software and IT industry which further illustrate the types of projects and activities that
- R&D Tax Credits Case Studies: Fashion
The following are two fashion company case studies which further illustrate the types of projects and activities that will potentially qualify for the R&D tax
- R&D Tax Credits Case Studies: Food and Beverage
The following are two examples of client development efforts in the food and beverage industry which further illustrate the types of projects and activities that
- Interest in Opportunity Zones Peaks as Higher Rates LoomJuly 27, 2021
The real possibility of higher capital gains rates has fueled interest by investors in opportunity zone funds.
While Code Section 1400Z, providing for the funds, was slipped into the Tax Cuts and Jobs Act late in the legislative process and with little fanfare, it quickly became popular with investment advisors.
- Puerto Rico Act 60: How You Can Lower Your Federal and State Tax Rates Under the Resident Tax Incentive CodeJuly 12, 2021
The Tax Incentive Code, known as “Act 60”, provides tax exemptions to businesses and investors that relocate to, or are established in, Puerto Rico. The incentives are particularly attractive to U.S. citizens who move to Puerto Rico because they do not need a residency permit, their Puerto Rico income is exempt from U.S. federal and state income taxes and they get to keep benefits such as Medicare and Social Security. Furthermore, the Puerto Rico tax code mirrors the U.S. Internal Revenue Code, making the transition much easier for those who become bona fide residents of Puerto Rico.
- Can New York State’s Pass-Through Entity Tax Program Help Reduce your Overall Tax Burden?July 8, 2021
On April 19, 2021, New York Governor Andrew Cuomo signed the 2021-2022 budget bill into law. The budget supports through significant tax increases, the Governor's $311 billion infrastructure plan, which is the largest and the most expansive in New York State's history. One of the key favorable provisions of the law is a new, elective Pass-through Entity (“PTE”) Tax. This new tax is enacted as a work around to the $10,000 state and local tax (“SALT”) deduction limitation, which was implemented under the Tax Cuts and Jobs Act (“TCJA”). Since state income tax is imposed directly on the Pass-through Entity, the income tax paid is fully deductible by the entity for federal income tax purposes and not limited by the $10,000 cap, which does not apply to business entities. In addition, electing taxpayers provide their owners with a credit to be utilized on their New York State (“NYS”) income tax return equal to such owners’ appropriate share of the tax paid by the PTE.
- Anchin: Personalized Accounting Services for Holistic GrowthJune 18, 2021
The COVID-19 pandemic has presented challenges to accounting firms and their clients, many of whom are still working on a strategy to combat this unprecedented situation. While CFOs and other finance professionals spent much of 2020 addressing the pandemic's hardships, in 2021 they will likely be shifting their focus toward implementing long-term plans to position their organizations for growth and profitability. Despite its toll on people and businesses, the pandemic has created an opportunity for accounting firm leaders to influence positive outcomes by reevaluating and adjusting their goals and executing wellthought-out strategies. As a result, advisory services are among the fastest-growing segments for firms such as Anchin, one of the country's leading accounting and advisory firms. Since the onset of the pandemic, Anchin’s team of professionals have made it a priority to assist their clients through COVID-19 related hardships including guiding clients through the transition to remote working, evaluating cash flow and costs, and providing them with continuous information and updates on the Paycheck Protection Program (PPP) and other incentives and programs.
- Can You Benefit from New Jersey’s New Emerge Program?June 9, 2021
On January 7, 2021, New Jersey passed the Economic Recovery Act of 2020 (the “Act”), which contains a comprehensive recovery package addressing the ongoing economic impact of the COVID-19 pandemic. Specifically, the Act includes over 15 different economic development programs incentivizing job creation, capital investment and community revitalization. Recently, the New Jersey Economic Development Authority (“NJEDA”) approved details regarding the Act’s new Emerge Program (the “Program”), a jobs-based tax credit program for businesses that invest private capital in the state and target priority industries. These tax credits are available for up to seven years.
- What Technology Companies Need to Know About the Enhanced NJEDA Technology Business Tax Certificate Transfer ProgramMay 12, 2021
The Technology Business Tax Certificate Transfer Program enables qualified, unprofitable, NJ-based technology or biotechnology companies with fewer than 225 U.S. employees (including parent company and all subsidiaries) to sell a percentage of their net operating losses (NOL) and research and development (R&D) tax credits to unrelated, profitable corporations.
- What A/E/C Firms Need to Know About the R&D Tax Credit and the Employee Retention CreditMay 7, 2021
In order to stimulate the U.S. economy during the pandemic, the federal government enacted stimulus initiatives including the Paycheck Protection Program (PPP). The PPP enabled a business to receive a loan, with the ability to be forgiven if used according to loan guidelines that were put in place to help businesses keep their workforce employed during the COVID crisis. While many architecture, engineering, and construction (A/E/C) businesses successfully participated in the program, receiving the loan and later applying for and receiving forgiveness, the tax ramifications of receiving a PPP loan initially were somewhat unclear. One area of uncertainty was the tax deductibility of expenses covered by the PPP, which would also impact and reduce the expenses that could be claimed for the Research and Development (R&D) tax credit.
- Is Your Company Eligible for a Refundable Payroll Tax Credit for Missed Work Time Related to the COVID-19 Vaccination?April 26, 2021
The American Rescue Plan extended and expanded the provisions of this credit to include employees who are experiencing symptoms, seeking a medical diagnosis or awaiting the results of the COVID test or are in the process of obtaining or recovering from the effects of any COVID-19 immunization.
- The Fiscal Year 2022 New York State Budget – The Benefits and Costs to YouApril 12, 2021
New York Governor Andrew M. Cuomo and legislative leaders have announced an agreement on the state’s fiscal year 2022 budget, which, among its various provisions, will significantly raise tax rates and make New York City the highest taxing jurisdiction in the country. The notable changes are discussed below, and it is important for taxpayers to consider how they may be impacted going forward.
- What Architecture, Engineering and Construction Firm Owners Need to Know About the Impact of a Full or Partial Suspension on the Employee Retention CreditMarch 25, 2021
A/E/C firms that experienced some type of government suspension in 2020 may qualify for this credit even if they did not have the required reduction in Gross Receipts. Even if you were considered an essential contractor, you may still qualify as having experienced a partial government suspension.
- Changes to R&D Expensing—Unpleasant Surprise to Taxpayers and Great Opportunity for BipartisanshipMarch 18, 2021
- What You Need to Know About the American Rescue Plan Act of 2021March 12, 2021
On March 11, 2021, the American Rescue Plan Act of 2021 (ARP) was signed into law by President Biden. The contents of the $1.9 trillion bill are mostly in line with the plan set forth by President Biden before he was inaugurated on January 20. The package is intended to provide additional economic relief related to the ongoing COVID-19 pandemic, and the majority of funds are allocated towards enhanced unemployment relief, expanded funding for COVID-19 relief programs, aid to state and local governments, and assistance to schools. From a taxpayer perspective, the bill included tax provisions that provide relief both to businesses and individuals through enhancements, and expansions of credits and programs that were put in place to keep families and small businesses afloat through the ongoing crisis. This includes an extension of payroll tax credits first instituted at the start of the pandemic for businesses.
- Anchin Opens Long Island Office to Accommodate Growing Team of Industry Experts March 4, 2021
Anchin is pleased to announce that it has opened an office on Long Island, in Uniondale, New York.
- New Stimulus: Careful Planning Is Required To Maximize Benefits from the Enhanced Employee Retention Credit (ERC)January 11, 2021
The ERC is a refundable payroll tax credit available to businesses affected by COVID-19 that continue to pay salaries to their employees. Whereas the original version of this provision (from the CARES Act) was very limited in scope, the current version has expanded the universe of taxpayers who qualify for the credit and, at the same time, has increased the amount of the credit.
- New Stimulus: What You Need to Know about the Tax Provisions of the Consolidated Appropriations Act, 2021 (The Act) December 30, 2020
Additional relief is on the way for individuals and businesses. Here are the key provisions of the additional round of stimulus in The Act passed by Congress and signed by the President.
- INSIGHT: Financing Innovations in Emerging Technologies With R&D Tax CreditsAugust 27, 2020
- IRS Will Suspend the Mailing of Delinquent Notices Until Backlog Is ClearedAugust 24, 2020
The IRS will stop mailing certain notices to taxpayers about their overdue taxes until it clears its 12 million pieces of mail backlog that accumulated while its processing centers were closed during the peak of the COVID-19 outbreak.
- INSIGHT: Taking Another Look at the Foreign-Derived Intangible Income DeductionJuly 24, 2020
The Foreign-Derived Intangible Income (FDII) income deduction is not the simplest of calculations. Gwayne Lai, Amanda Scott, and Yair Holtzman of Anchin show how some taxpayers can use existing R&D data to get a head start.
- U.S. Tax Court Reaffirms Architecture, Engineering and Construction Industry’s Right to Claim R&D Tax CreditsJuly 7, 2020
Taxpayers within the Architecture, Engineering and Construction (AEC) industry received a big win from the U.S. Tax Court this past December. The Tax Court’s decision reaffirmed that AEC industry companies contracted by developers or other clients are indeed eligible to claim R&D tax credits for research activities they perform. This has long been a contentious issue between the IRS and AEC Industry taxpayers. Populous Holdings, an architectural design services company, had claimed R&D tax credits on its 2010 and 2011 tax returns totaling nearly $300,000. The IRS disallowed these claims, arguing that the research activities were funded by Populous clients who contracted with the company for its services.
- Anchin: The Virtual Strategist CFOJune 12, 2020
Chris Noble explains how Anchin's outsourced accounting services group, now rebranded as the Client Accounting Advisory Services Group (CAS), is a natural extension of Anchin's proactive client service model.
- What You Need to Know about Additional Opportunity Zone Relief Available due to COVID-19 PandemicJune 5, 2020
Qualified Opportunity Funds (“QOF”) and their investors have been working diligently to try and meet certain time-sensitive deadlines in order to comply with various Opportunity Zone rules. Due to the COVID-19 pandemic and the quarantine restrictions instituted by local governments, meeting these deadlines has been challenging, if not impossible. The Internal Revenue Service has released Notice 2020-39 (“the Notice”) providing much-needed relief for QOFs and their investors. The Notice provides relief for the 180 day investment requirement for QOF Investors, the 90 percent investment standard for QOFs, and the 30 month substantial improvement period. The Notice also confirms the 24-month extension of the working capital safe harbor and the 12-month extension for QOFs to reinvest certain proceeds.
- For Companies Retooling to Fight COVID-19, R&D Tax Credits Are Important WeaponsMay 14, 2020
For many companies, catalyzing successful innovation is already critical to long-term strategy and success. Companies recognize the importance of tax credits and incentives as critical weapons in remaining competitive and harnessing innovation. This R&D tax credit may be increasingly attractive for companies that are redesigning their business processes and/or product innovation in the face of the pandemic.
- A Tax Credit for COVID-19 InnovationMay 5, 2020
Manufacturers repurposing production and research to support the relief effort may qualify.
- The CARES Act: Commonly Asked Questions for Technology CompaniesMay 1, 2020
With Congress swiftly passing the largest economic stimulus package in history, it’s no surprise that the provisions of the CARES Act raised a significant amount of questions. In the past week alone we’ve seen more guidance and continued confusion amongst taxpayers. We hope the confusion subsides as more guidance is released over the coming days. Although we have received many questions, here are some of the most commonly asked questions we have recently discussed with technology companies.
- What to Know About the Research & Development (R&D) Tax Credit and the IRS’ New Compliance CampaignMay 1, 2020
The R&D tax credit can be a powerful incentive, often providing a hidden source of cash from prior years’ expenses while also serving to significantly reduce current and future years’ federal and state tax liabilities. The R&D tax credit is also a tool for refueling a company’s R&D efforts. Planning ahead by creating an infrastructure that identifies qualifying research activities and collects contemporaneous documentation is essential to reducing future tax liabilities and synthesizing an R&D tax credit that will be sustainable on audit examination. There has been a new development related to this credit.
- IRS Update: Deductions Related to Forgiven PPP Loans Are Non-DeductibleMay 1, 2020
Late yesterday, the Internal Revenue Service (“IRS”) issued Notice 2020-32, relating to the deductibility, for Federal Income Tax purposes, of the expenses paid with the proceeds of a PPP loan that is subsequently forgiven.
- Private Investment Funds, Related Entities and Individuals Can Benefit From COVID-19 ReliefApril 21, 2020
The COVID-19 pandemic has put significant stress on the liquidity and profits of hedge funds, private equity/venture capital funds and their respective portfolio companies. On March 18, 2020, the Families First Coronavirus Response Act and on March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) were signed into law. Given these uncertain times and the multitude of changes, provisions and opportunities these laws present, we’ve prepared a general summary of certain relevant matters that private investment funds, related entities and individuals should consider in order to help navigate this crisis. Accordingly, please use this guide for general information purposes only, and please reach out to us with any specific questions or issues you have.
- Navigating Uncharted Waters: Responding to the Business Impact of COVID-19March 31, 2020
While all organizations are in uncharted waters in dealing with the resulting economic turmoil, professional firms such as ours have a responsibility to help clients navigate through the crisis. Many businesses have addressed the immediate needs created by the pandemic: implementing remote workplace regimens, revising paid-time-off and other policies to assist employees, enacting customer support programs, etc. Having addressed the most urgent needs, it is now time to focus on issues that pose an existential threat to long-term business continuity and viability. Here is some advice that we’re sharing with our firm’s clients.
- Introducing Anchin’s COVID-19 Resource TeamMarch 30, 2020
To assist you with evaluating the broad range of programs now available, we have established the Anchin COVID-19 Resource Team, a coordinated group of experienced professionals that will work alongside your engagement teams, in claiming the benefits you need to meet your cash flow, maintain your workforce and handle other critical challenges.
- Understanding How the Tax Provisions of the Coronavirus Aid, Relief and Economic Security (CARES) Act Provide Broad ReliefMarch 30, 2020
On Friday, March 27, 2020, the CARES Act became law. The Act includes a wide range of financial and tax relief for businesses and individuals. It is the largest stimulus package ever passed. The Anchin COVID-19 Resource Team can provide support and insight with your evaluation of benefits, coordinate assistance under different provisions of the Act, and assist you in your application for benefits.
- What the Families First Coronavirus Response Package Means to YouMarch 26, 2020
As noted in an earlier release, phase two of the federal government’s legislation requires certain size employers to provide paid sick leave as well as paid family and medical leave to employees. The government then provides a fully refundable credit against payroll taxes to offset the qualified amounts paid to employees. There are additional details below. First, however, in order to understand the tax credits available, one must understand the paid leave you may be required to provide your employees.
- Senate Approves Over $2 Trillion in Relief to Ease Economic HardshipMarch 26, 2020
The Senate finally approved legislation providing over $2 trillion of relief designed to ease the hardship caused by the coronavirus outbreak. This legislation still requires approval from both the House and President. Approval from both is expected over the next few days.
- COVID-19 Guidance for the Architecture & Engineering and Construction IndustriesMarch 25, 2020
The impact of the coronavirus has affected nearly every industry, and the A/E/C sectors are no exception. Although essential construction is exempt from the workforce order that Governor Cuomo announced on Friday, it is likely that there may be jobs shutting down or slowing down in the near future.
- Our Latest COVID-19 Update: Information On Business Relief, Tax and Financial MattersMarch 23, 2020
The past week was one of the more challenging we have faced. Going forward, for as long as it's useful, we will bring you a regular round up of relevant COVID-19 information highlighting what you need to know to manage through this crisis.
- What You Need to Know About the Families First Coronavirus ActMarch 20, 2020
The Families First Coronavirus Response Act was signed into law on March 18th. The Act requires most private employers with fewer than 500 employees to provide paid sick and family leave to employees affected by the coronavirus. It also provides certain tax relief to assist businesses in providing these additional benefits. The Act is currently scheduled to take effect April 2, 2020.
- Covid-19 – Addressing Key Business IssuesMarch 16, 2020
The disruption to the economy and to how we socialize due to Covid-19 is quite significant. As with other major disruptions of the past, we will likely progress through a period of uncertainty after which businesses will slowly recover. Here are several key items to address so you can keep your business and its employees on track.
- 5 Tips to Help You Build Your Five-Year Plan Now February 20, 2020
For a tech startup, the future may look nothing like the present. Those five years can move quickly – which is why it’s vital to start thinking about the answer now.
- What Tax Credits Do I Qualify For?December 2, 2019
TAX SEASON IS AROUND the corner, and if you want to reduce how much you pay the government, you need to understand which tax credits you can claim.
- Insights on the Second Set of Qualified Opportunity Zone Regulations April 25, 2019
The long awaited second set of proposed regulations to the Qualified Opportunity Zone (QOZ) program were released on April 17, 2019. Unfortunately, per the U.S. Treasury, certain sections of the regulations can be relied upon by the taxpayer and some cannot.
- A US tax break Israeli startups can utilizeFebruary 19, 2019
Many Israeli companies with connections to the United States have benefited extensively from the research and development tax credit, which has recently become significantly more accessible.
- Industry Spotlight – Architecture, Engineering & ConstructionJanuary 29, 2019
Architecture, engineering, and construction (“AEC”) firms frequently invest substantial resources to advance and improve building designs and processes. When contractors, architecture and engineering professionals develop and design new and innovative techniques, their activities may qualify for the R&D tax credit. As a result of unique project aspects and ever-changing structure and energy codes, many projects that appear similar on the surface are, in fact, at least partially new or improved with respect to function or performance.
- What is the R&D Tax Credit?January 29, 2019
The federal research and development (R&D) tax credit under Internal Revenue Code (IRC) section 41 was first introduced by Congress in 1981. The purpose of the credit is to incentivize U.S. companies to continue and increase spending on research and development within the U.S. The R&D tax credit is available to businesses that uncover new, improved, or technologically advanced products, processes, principles, methodologies or materials. In addition to “revolutionary” activities, in some cases the credit may be available if a company has performed “evolutionary” activities such as investing time, money, and resources toward improving its products and processes.
- Meet the Anchin R&D Tax Credits Team: Yair HoltzmanJanuary 29, 2019
As the Research & Development (“R&D”) Tax Credits Group Practice Leader, I am responsible for the leadership, strategic focus and business performance of the group. In this role, I oversee the R&D group’s growth, vision, diversification and development.
- Opportunity Zone Proposed Regulations Issued: What Was AnsweredOctober 22, 2018
On October 19, 2018, the Treasury released proposed regulations relating to the Opportunity Zones. These regulations may be relied upon by taxpayers until final regulations are published. The proposed regulations help clarify some of the ambiguities/questions that were inherent in the TCJA with respect to Opportunity Zones. Taxpayers now have guidance to rely on to help start investing in Opportunity Zones.
- More on the New Qualified Opportunity Zones – Formation and Operation of a FundAugust 9, 2018
This is the third in a series of alerts by the Anchin Tax Credits and Incentives Team on the new Economic Opportunity Zones program created by the Tax Cuts and Jobs Act (TCJA) in December of 2017 to encourage and incentivize long term investments in qualified low-income communities nationwide. The program provides a tax incentive for investors to roll their capital gains into a Qualified Opportunity Fund (QOF), that in turn invests in certain economically distressed communities.
- More on the New Qualified Opportunity Zones – Significant Tax BenefitsJune 13, 2018
This is the second in a series of alerts on the new Economic Opportunity Zones program created by the Tax Cuts and Jobs Act (TCJA) in December of 2017 to encourage and incentivize long term investments in qualified low-income communities nationwide. The program provides a tax incentive for investors to roll their capital gains into a Qualified Opportunity Fund (QOF) that in turn invests in economically distressed communities.
- New Qualified Opportunity (Zone) Funds Offer Significant Tax Incentives for InvestorsMay 18, 2018
The Economic Opportunity Zones program was created by the Tax Cuts and Jobs Act (TCJA) in December of 2017 to incentivize the private sector to invest long term in qualified low-income communities throughout the United States in order to spur economic development and job creation. The program seeks to utilize a portion of the estimated 2.3 trillion dollars of unrealized capital gains (in the stock market and mutual funds alone) for development in these designated areas.
- Tax Cuts and Jobs Act Offers Favorable Tax Breaks for Real Estate OwnersJanuary 3, 2018
The Tax Cuts and Jobs Act (TCJA), which was signed into law on December 22, offers the real estate industry a treasure trove of tax breaks. Overall, most Real Estate companies and owners will come out ahead under the new tax law, but there are a number of tax breaks that were eliminated. Here are the most important changes in the new law that will impact the real estate industry.
- Tax Cuts and Jobs Act Offers Favorable Tax Breaks for BusinessesDecember 28, 2017
The Tax Cuts and Jobs Act (TCJA), which was signed into law on December 22, contains a treasure trove of tax breaks for businesses. Overall, most companies and business owners will come out ahead under the new tax law, but there are a number of tax breaks that were eliminated or reduced to make room for other beneficial revisions. Here are the most important changes in the new law that will affect businesses and their owners.
- Tax Bill Impacts Service FirmsDecember 28, 2017
On December 22, President Trump signed into law the “Tax Cuts and Jobs Act of 2017” (TCJA). The bill contains many provisions effective in 2018 that will significantly impact professional and non-professional firms.
- The Tax Cuts and Jobs Act Doesn’t Cut the R&D Tax CreditDecember 27, 2017
On December 22nd, President Trump signed the Tax Cuts and Jobs Act of 2017 (“TCJA”) into law, setting the stage for the most sweeping update to the U.S. tax code since 1986 tax reform enacted under President Reagan. The centerpiece of the TCJA, is a permanent reduction in the corporate tax rate from approximately 35% to 21%. Thankfully, as expected, the final law has preserved the research and development (“R&D”) tax credit, which was made permanent in the Protecting Americans against Tax Hikes (“PATH”) Act of 2015.
- Tax Bill Impacts A/E/C IndustriesDecember 22, 2017
Today, President Trump has signed into law the “Tax Cuts and Jobs Act of 2017” (TCJA). The bill contains many provisions that will significantly impact the construction, architecture, and engineering industries.
- Congress passes biggest tax bill since 1986December 21, 2017
On December 20, the House passed the reconciled tax reform bill, commonly called the “Tax Cuts and Jobs Act of 2017” (TCJA), which the Senate had passed the previous day. It’s the most sweeping tax legislation since the Tax Reform Act of 1986. The bill makes small reductions to income tax rates for most individual tax brackets, significantly reduces the income tax rate for corporations and eliminates the corporate alternative minimum tax (AMT).
- Tax Bill ReleasedDecember 18, 2017
Late Friday night, a written version of the Republican tax proposal was finally released. The bill represents a substantial revision of our country’s tax code.
- Tax Plan Moves ForwardDecember 14, 2017
The Senate and House conference committee made further progress on its tax reform plan.
- Senate Passes Tax BillDecember 5, 2017
The Senate voted and narrowly passed its version of tax reform legislation clearing another significant hurdle in the progress of changing our nation's tax system. There still remains significant differences between the House and Senate versions which will require reconciliation of the two bills.
- New York City Takes a Step Towards Tax Relief for Small Businesses in ManhattanDecember 1, 2017
The New York City Council passed a bill that will relieve many businesses in Manhattan of a portion of their tax expense.
- Location LuresNovember 6, 2017
Tax Partner Paul Gevertzman offers practical observations on credits and incentives, providing positives & negatives and showcasing pitfalls.
- U.S. Research and Development Tax CreditOctober 30, 2017
Yair Holtzman, Leader of Anchin's Research and Development Tax Credits Group, explains how the credit works and shares his findings on the impact of the PATH Act.
- Wisconsin’s Foxconn Deal Highlights How States Use Cash to Sweeten BidsOctober 20, 2017
Tax Partner Paul Gevertzman weighs in on this increasingly popular approach.
- New Research Credit Directive Provides Safe Harbor for Taxpayers That Expense R&D Costs on Audited Financial StatementsOctober 10, 2017
The Large Business and International (LB&I) division of the IRS recently released guidance that will allow taxpayers to take advantage of a new safe harbor under which an adjusted amount of their ASC 730 R&D costs can be deemed qualified research expenses (QRE) for the purpose of claiming the Section 41 research tax credit.
- Federal Tax Proposal ReleasedSeptember 28, 2017
On Wednesday, September 27th, the “Unified Framework for Fixing Our Broken Tax Code” was released. In the nine page outline, numerous concepts for federal tax reform were presented. We have been told that this outline was intentionally broad in order to allow the Ways and Means Committee to take the first step in drafting legislation.
- Sales and Use Tax Exemptions Extended for Certain Property and Service Purchases for Leased Commercial Office Space in Lower ManhattanSeptember 19, 2017
Amendments have been made to the Tax Law that will extend tax incentive opportunities for businesses that locate or relocate offices in lower Manhattan.
- New York State Alcoholic Beverage Production CreditAugust 15, 2017
The New York State Department of Taxation and Finance has expanded the applicability of the Alcoholic Beverage Production tax credit (formerly known as the Beer Production Credit). For tax years beginning after December 31, 2015, the credit is now available to registered distributors that produce beer, cider, wine and liquor.
- Key New York City Tax Breaks ExtendedJuly 12, 2017
Valuable tax breaks for New York City businesses and developers were extended as part of New York State Assembly Bill 40001, enacted into law on June 29, 2017. The State's new omnibus bill renewed and extended programs that provide attractive financial incentives for businesses to remain in or relocate to Lower Manhattan and the outer boroughs.
- It’s Not Too Late to Amend Your 2016 Tax Return for the R&D Tax CreditJuly 5, 2017
Recently, the IRS issued interim guidance on how eligible small businesses can benefit from a new provision that enables them to apply their Section 41, Research and Development tax credit against their payroll tax liability instead of their income tax liability, allowing qualified companies to start using the credits before becoming profitable.
- New Jersey Angel Investor Tax CreditMay 24, 2017
New Jersey has amended and expanded the rules for claiming the Angel Investor Tax Credit. The Angel Investor Tax Credit provides for a tax credit equal to ten percent (10%) of the qualified investment made by a taxpayer in a New Jersey emerging technology business.
- New York Announces Passage of State BudgetApril 25, 2017
Governor Andrew M. Cuomo announced the passage of the 2018 State Budget (“Budget”) which includes some interesting tax provisions.
- Sharp turns: Unexpected twists in the 2017 tax filing seasonMarch 7, 2017
Tax Partner Paul Gevertzman recommends considering an extension, in case pending rule changes are to the filer's benefit.
- Facepalm! 7 Tax Mistakes Likely to Invite an AuditFebruary 23, 2017
Paul Gevertzman, Tax Partner, cautions us to avoid simple mistakes that might trigger scrutiny and explains the risk of writing off a small business loss the IRS might not see as deductible.
- How to Avoid Tax ScamsFebruary 22, 2017
Tax Partner, Paul Gevertzman, highlights the foolishness of sending information via e-mail rather than secure upload as well as the IRS' improving ability to spot false returns filed to scam a refund.
- Cuomo Rebrands Start-Up NYFebruary 8, 2017
At the end of January, Governor Cuomo announced proposed changes to Start-Up NY, an economic development program created in 2013 to provide a 10 year tax-free environment for companies looking to open or expand business on or near college campuses, primarily in upstate New York. The program received widespread criticism, questioning both its fairness and its effectiveness.
- Make Sure Your Business is on the Path to Comply with PATHJanuary 31, 2017
In December 2015, President Obama signed the Protecting Americans from Tax Hikes (PATH) Act. The purpose of the legislation was in part to protect businesses and individuals from tax fraud by lengthening the time the IRS has to review claims. The law also extends some tax credits for businesses and working families.
- Tax Credits Clarity Provides Great Opportunity for Businesses Regarding Internal Use SoftwareOctober 7, 2016
On October 3rd, 2016, the Treasury and IRS released final regulations regarding Internal Use Software (“IUS”) expenditures as related to the Section 41 Research & Development (“R&D”) tax credit.
- Additional Transition Relief for Employers Claiming the Work Opportunity Tax CreditJuly 20, 2016
Notice 2016-40 expands and extends by three months the transition relief provided in Notice 2016-22 for meeting the 28-day deadline in Section 51(d)(13)(A)(ii) of the Tax Code.
- Assessing Section 199 and IRS Released Proposed Regulations to Determine Deduction EligibilityApril 14, 2016
Designed to protect jobs in the United States manufacturing and related sectors, Section 199, also known as the Domestic Production Activities Deduction ("DPAD"), allows a deduction equal to 9% of the lesser of a taxpayer’s Qualified Production Activities Income ("QPAI") or its taxable income.
- IRS Emphasizes the Need for Compliance When Claiming Tax CreditsApril 12, 2016
This past February, the IRS released its annual "Dirty Dozen" list of warning alerts for 2016 filing season. The Dirty Dozen includes a variety of common scams taxpayers may encounter at any time during the year.
- Last-Minute Moves That Can Trim Your Tax BillMarch 31, 2016
Anchin's tax expert, Paul Gevertzman, offers guidance before submitting your tax return.
- Window for Work Opportunity Tax Credit ExtendedMarch 16, 2016
The IRS is extending the time employers who want to claim the Work Opportunity Tax Credit (WOTC) have to file Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit, for 2015 hires.
- How to Use Tax Planning for Better Cash Flow ManagementMarch 10, 2016
Paul Gevertzman, tax expert at Anchin, discusses how tax planning can assist with cash flow projections.
- 12 Times When It Makes Sense to Hire a Tax PreparerMarch 2, 2016
Anchin's tax expert, Paul Gevertzman, identifies situations when a tax accountant could be a valuable addition.
- How to Determine What Your Business Idea Is WorthMarch 2, 2016
Tax expert at Anchin, Paul Gevertzman, recommends new business owners evaluate options based on realistic expectations.
- The 5-Step Guide to Launching Your Own BusinessMarch 2, 2016
Paul Gevertzman, tax expert at Anchin, offers an unexpected suggestion to consider when launching your new business.
- For Small Businesses and Entrepreneurs, Some Welcome ClarityFebruary 19, 2016
Paul Gevertzman, Anchin's Tax Credits and Incentives Leader, provides clarity to small business owners on the PATH Act.
- The Protecting Americans from Tax Hikes (PATH) Act of 2015 - Educational BenefitsFebruary 10, 2016
On December 18, 2015, Congress passed and the President signed The Protecting Americans from Tax Hikes (PATH) Act of 2015. This legislation extends or retroactively renews and makes permanent a number of federal tax provisions including certain educational benefits.
- Permanent R&D Tax Credit - A Game Changer for U.S. Businesses in the Food and Beverage IndustryJanuary 12, 2016
On December 18, 2015, President Obama signed into law The Protecting Americans from Tax Hikes Act (PATH) of 2015.
- Permanent R&D Tax Credit A Game Changer for America’s BusinessesDecember 21, 2015
On December 18, 2015, President Obama signed into law The Protecting Americans from Tax Hikes Act (PATH) of 2015.
- 2015 “Extenders” Legislation Does More Than Just Extend Tax BreaksDecember 21, 2015
On December 18, the Senate passed the Protecting Americans from Tax Hikes Act of 2015 (the PATH Act), which the House had passed on December 17. Many popular tax breaks had expired December 31, 2014, so for them to be available for 2015, Congress had to pass legislation extending them. But the PATH Act does more than that.
- New York City-Corporate Income, Miscellaneous Taxes: Authorization for Biotechnology Credit Extended for Three YearsOctober 7, 2015
The Biotechnology Tax Credit allows qualified emerging technology companies (QETCs) specializing in biotechnology to claim a tax credit against the General Corporation Tax and Unincorporated Business Tax for amounts paid or incurred for certain expenses in New York City.
- Accelerated Sales Tax Exemption Program (A-STEP) May Save You ThousandsJuly 16, 2015
Small businesses and their growth are vital components of the economic livelihood of New York City. However, many of them are unable to expand their businesses and achieve long term success due to lack of financial resources. To help, the New York City Industrial Development Agency (NYCIDA) has designed the A-STEP Program to help small businesses with equipment upgrades and renovations.
- Still Much for Employers to Do During 2015 WOTC Hiatus PeriodJuly 7, 2015
The Work Opportunity Tax Credit (WOTC) is a federal income tax credit for each new hire that is a member of certain targeted groups.
- Two-Year Extension for Vital New York City Tax BreaksJuly 1, 2015
Lucrative tax breaks for New York City businesses and developers were extended after the recent legislative sessions concluded in Albany. These tax breaks provide attractive financial incentives for businesses to remain in or relocate to Lower Manhattan and the outer boroughs.
- Expiration date approaching for certain New York City based incentivesApril 28, 2015
The following New York City based incentive programs are expiring on June 30, 2015
- New Jersey Tax Incentives OpportunityMarch 30, 2015
Governor Chris Christie is proposing turning New Jersey’s Business Employment Incentive Program (BEIP) into a program offering tax credits in exchange for job creation. This comes after lawmakers cut an estimated $175 million in BEIP funding from the budget to help close a revenue shortfall last year.
- Replacing tax rebates with tax credits bad for local businesses and New Jersey alikeMarch 14, 2015
When state Sen. Raymond Lesniak (D-Union) introduced legislation late last month to issue 10-year tax credits to businesses promised rebate checks under the now defunct Business Employment Incentive Program, he took a rather sanguine view of the bill and its benefits for local companies.
- Window of opportunity to claim Work Opportunity Tax CreditFebruary 25, 2015
The Work Opportunity Tax Credit (WOTC) is a federal income tax credit for each new hire that is a member of certain targeted groups. The Tax Increase Prevention Act of 2014 (the Act), enacted on December 19, 2014 extended the WOTC through December 31, 2014, for companies hiring individuals in targeted groups, and for qualified tax-exempt organizations hiring qualified veterans.
- The Agricultural Chemicals Security Credit has expired, but is opportunity still knocking?February 18, 2015
The Agricultural Chemicals Security Credit was applicable to eligible expenditures incurred after May 22, 2008 and before January 1, 2013.
- Court Case Impacts Eligibility of Capped Contracts for R&D Tax CreditsFebruary 16, 2015
On January 29, 2015, the United States Court of Appeals for the Eleventh Circuit affirmed a federal district court’s decision in Geosyntec Consultants, Inc. v. United States, No. 14-11107, disallowing the R&D tax credit for research expenditures linked to capped contracts.
- Proposed Regulations Provide Clarity and Guidance Related to Computer Software as it Applies to the R&D Tax CreditJanuary 26, 2015
On January 16, the Treasury and IRS released proposed regulations (REG-153656-03) regarding internal use software ("IUS") expenditures as related to the Section 41 Research & Development ("R&D") tax credit. The proposed regulations contain several important changes related to claiming the R&D tax credit for IUS expenditures.
- COVID-19 Update Center
The Anchin COVID-19 Update Center is available to simplify your access to critical financial information. It is updated regularly to supplement your communications with your
- How Does Tax Reform Impact You?
6 Recent Tax Law Changes That Technology Companies Need to Know07/25/2019 Automatic Extension Available for Making Portability Election1/31/2019 What Should Businesses Know About Qualified Opportunity Zones?1/15/2019 How Can
- Guide to Education Tax SavingsJuly 16, 2021
We are pleased to present this compilation of articles titled “Guide to Education Tax Savings", updated for The Further Consolidated Appropriations Act of 2020 and the Consolidated Appropriation Act of 2021 (CAA).
- Architecture, Engineering and Construction Industry's Eligibility to Claim R&D Tax Credits June 26, 2020
Section 41 research and development (R&D) tax credits are available to Architectural, Engineering, and Construction (AEC) industry companies that design and develop new or improved products, processes, methods, techniques, or materials. In addition to “revolutionary” activities, research credits may also be available to companies performing “evolutionary” activities or incremental improvements to their own products and production processes.
- INSIGHT: Save Money While Fighting CyberattacksDecember 12, 2018
The Research and Development tax credit is a U.S. business incentive offered to companies that experiment with emerging technologies, including cybersecurity solutions. The article offers guidance related to this section of the tax code and highlights the types of core business activities that can qualify for this generous credit.
- A Tactical Approach to R&D Tax Credits for Defense ContractorsNovember 12, 2018
The purpose of this article is to help private military defense contractors obtain a better understanding of the federal R&D tax credit and how it may help enable military defense innovations. This article also explores recent defense innovations for land, air, sea, cyberspace, and outer space threats and how the federal R&D tax credit incentive offered may be able to save a business money when developing these solutions.
- Refueling innovation in the US chemicals industry by taking advantage of the research and development tax creditAugust 1, 2018
It is worthwhile for any US based business in the chemical industry that is attempting to innovate to consult with an R&D tax credit professional if they are not already claiming this credit. Even if a company is already claiming this credit it is worth examining to ensure this benefit is truly optimized.
- Tax Ideas for a Booming IndustryMarch 20, 2017
The construction industry is alive and well in 2017. As a major force in New York and the greater US economy, it employs more than
- Software Development and the Research CreditMarch 1, 2017
This article discusses the definition, workings, recent history / developments, and calculation methodologies for the R&D tax credit. It then offers specific examples of qualifying
- Debunking Some Common R&D Tax Credit MythsDecember 5, 2016
Yair Holtzman, Gleb Gorkhover and Michael Ganz of Anchin Block & Anchin examine common myths that deter companies from claiming benefits of the research and
- A Comparative Review: Innovation-Centric Tax Incentives in the U.S. and U.K.November 22, 2016
Yair Holtzman and Ronald Kalungi of Anchin Block & Anchin look at U.K. and U.S. tax provisions geared to stimulate R&D and technological innovation, including
- Improving Packaging Design ROIMarch 29, 2016
Yair Holtzman of Anchin, Block & Anchin examines how expenses to improve packaging design can qualify for research and development tax credits. As new materials,
- Permanent R&D Tax Credit: A Game Changer for America’s BusinessesJanuary 14, 2016
Yair Holtzman of Anchin, Block & Anchin writes that more taxpayers are eligible to claim R&D credits with enactment of the PATH Act, and the
- Don't Forget to Examine Your Company's State Research and Development CreditsJanuary 4, 2016
Yair Holtzman, Gleb Gorkhover, Michael Ganz and Matthew Bechtold of Anchin, Block & Anchin offer a state-by-state examination of the various state R&D credits and
- The Financial Services Industry and the Research and Development Tax CreditNovember 1, 2015
The financial services industry is an essential component of the U.S. economy that provides liquidity to companies and individuals, is responsible for safeguarding and investing
- Catalyzing Innovation in the Chemicals Industry: How the Research and Development Tax Credit Can Benefit Your CompanyMarch 25, 2015
Yair Holtzman and Matthew Bechtold of Anchin, Block & Anchin explain the costs that are eligible for-and computations required to claim-research and development tax credits,
- The R&D Tax Credit — A Catalyst For Life Sciences InnovationFebruary 1, 2015
Does your company develop new medical products, pharmaceuticals, or innovative production techniques in the United States? Does your company create software for the medical industry
- Secret Ingredient For Keeping Food Innovations Fresh - The R&D Tax CreditJanuary 1, 2015
Innovation is a key driver in helping food and beverage companies deliver on strategic goals by getting the right products to market with speed and
- The State of the U.S. Medtech IndustryJanuary 1, 2015
The United States is the global leader in medtech innovation, but can it continue to maintain that position? As the medical device industry enters 2015, the
- Building Your Research and Development Tax Credit Claim on a Solid Foundation: The Architectural, Engineering and Construction IndustryJune 1, 2014
While large multinational architectural, engineering and construction firms are well aware of the benefits of the Research and Development (R&D) tax credit and avail themselves
- Building Your Research and Development Tax Credit Claim on a Solid Foundation: The Architectural, Engineering and Construction IndustryJanuary 1, 2014
Introduction While large multinational architectural, engineering and construction firms are well aware of the benefits of the Research and Development (R&D) tax credit and avail themselves
- You Can Have Your Cake and Eat It Too: The Research and Development Tax Credit for the Food and Beverage IndustryJanuary 1, 2014
Abstract Food and beverage innovation is a key driver in helping companies in the industry deliver on strategic goals by getting the right products to market
- U.S. Medtech Challenges at Home and AbroadAugust 1, 2012
Healthcare reform, regulation, and R&D hurdles must be overcome to gain access to the big opportunities for the medtech industry. Today, the United States is the
- How Biomedical Companies Successfully Navigated Turbulent Economic TimesMay 1, 2012
While most giant corporations crashed during the worst economic climate since the Great Depression, the biomedical devices industry grew, invested, and prospered. The Great Recession
- An Overlooked Tax Benefit: The U.S. Agricultural Chemicals Security CreditJanuary 5, 2011
Introduction The 110th Congress passed the Food, Conservation, and Energy Act of 2008 (Pub. L. No. 110-246), popularly known as the "Farm Bill," in May 2008 over
- The Research and Experimentation Tax Credit: A Credit Fraught with Uncertainty and in a Process of ExperimentationJanuary 1, 2011
Abstract Purpose – The purpose of this paper is fourfold: to provide an overview of the alternative simplified credit (ASC) and a basic understanding of how
- Utilizing Innovation and Strategic Research and Development to Catalyze Efficient and Effective New Product DevelopmentJanuary 1, 2010
Introduction The ability to effectively innovate and develop new products is a vital core competency that any company must possess if it is going to be
- Harnessing Efficiency and Building Effectiveness in the Tax DepartmentJanuary 1, 2010
Introduction Organizations employ a number of formulas to improve their business processes. These actions typically involve searching for internal cost-savings opportunities, developing departmental strategic relevance and
- Phillip Ross, Leader of Anchin's Construction Industry GroupMay 12, 2020
Phillip Ross shares how Anchin's Construction Group meets specific client needs and helps fuel clients' growth.
- Chris Noble, Leader of Anchin's Technology GroupMay 11, 2020
Chris Noble discusses Anchin’s Technology Industry Group and the services they provide for entrepreneurial, venture capital and private equity-backed businesses ranging from emerging start-ups to growing and established technology companies.
- Marc Federbush, Leader of Anchin's Consumer Products GroupMay 11, 2020
Marc Federbush explains why Anchin is the "go-to" accounting firm for consumer products companies.
- Phillip Ross, Leader of Anchin's Architecture and Engineering Industry GroupMay 9, 2020
Phillip Ross shares how his group's value-added expertise differentiates it in the marketplace.