All companies continually look for ways to save money and streamline efficiencies. However, many companies fail to take full advantage of tax credits when they seek ways to improve their bottom line. 

Maximizing tax credit incentives to improve your bottom line

All companies continually look for ways to save money and streamline efficiencies. However, many companies fail to take full advantage of tax credits when they seek ways to improve their bottom line.

While most employers are familiar with hiring tax credits such as the Work Opportunity Tax Credit (WOTC) and state enterprise zones, there are several other tax incentives programs that often go unclaimed.

“Most companies can successfully scratch the surface on the obvious tax credit opportunities, but it often takes outside assistance to both recognize the full spectrum of available tax credit incentives, and also to know how to apply for and acquire them.”

-  Dean Rehfeld, vice president, product management,

Ceridian Tax Compliance and Payment Solutions

“There are the obvious tax credit opportunities, and then there are the not so obvious,” commented Dean Rehfeld, vice president, product management, Ceridian Tax Compliance and Payment Solutions. “Most companies can successfully scratch the surface on the obvious opportunities, but it often takes outside assistance to both recognize the full spectrum of available tax credit incentives, and also to know how to apply for and acquire them.”

For companies looking to improve efficiencies, save money and streamline operations, turning to a trusted partner who can do the heavy lifting for them can help maximize earnings, as well as help organizations spend more of their time focusing on what they do best – their core business.

Streamlining operations, maximizing returns

Companies often see the process of claiming tax credits as daunting and burdensome – one that is full of compliance challenges that drain a company's time and resources, with no guarantee that the effort put into claiming the credits will pay off in the end. Consequently, the struggle to be successful doesn’t always make the investment worthwhile.

Brandon Edwards, CEO, Tax Credit Co., has found that employers generally face two challenges when it comes to claiming tax credits. They ask:

  1. How can we obtain clarity on the value of tax credits our company is eligible for?
  2. How can we go about realizing this value without using too many resources?

“Employers find tax credits challenging because the landscape of state and federal tax incentives is complex and constantly changing,” said Edwards. His experience has taught him that seeking outside assistance from experts helps ensure companies are capturing all available tax credits with much less effort, and remaining compliant while doing so.

While the process to claim tax credits might seem intimidating, companies who are serious about maximizing returns and improving overall operational efficiency can seek help in easing this burden and take full advantage of many unclaimed tax credits.

Saving you hundreds of thousands of dollars

By claiming tax credits and grants, companies can save hundreds of thousands of dollars, sometimes millions. For example, a Fortune 500 health care provider had previously been claiming Research & Development tax credits internally with annual filing of $1 million in tax credits. When they outsourced this process to Ceridian partner, Tax Credit Co., they were able to double their credits to $2 million.

Likewise, a Fortune 500 manufacturer has also been hugely successful in capitalizing on unclaimed tax credits. In processing credits internally, the manufacturer recognized $100K in tax credits annually. After partnering with Tax Credit Co., the manufacturer increased its credits to $800K annually.  

These examples illustrate how trusted partners who are flexible, creative and committed to breaking down the barriers in identifying and realizing tax incentive opportunities can create a huge win for companies. This is especially true when digging into areas of tax credits that often go unclaimed, including:

  • State hiring credits
  • Job training incentives
  • Negotiated incentives
  • Research and development credits
  • Domestic Production Activities Deduction (DPAD)
  • Sales/use and excise taxes

Taking advantage of the full range of eligible tax credits can significantly boost your bottom line – and working with experienced partners who focus on tax credit initiatives can help you deliver even greater value to your organization.