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Tax Credits and Incentives

Don't Leave Money On The Table

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.

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.

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.

Success Stories

News

  • 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 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.

  • 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.

  • 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.

  • How Does Tax Reform Impact You?

    The Trump Administration passed an intricate and complex tax reform bill just before the close of 2017, but what will this mean as we move…

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