Tax credits offer businesses a valuable way to offset expenses and reinvest in growth. Whether you’re looking to improve cash flow, encourage hiring, or recover from recent economic challenges, taking advantage of available tax credits can make a significant impact. At Verite Diversity Business Fund, we help businesses identify and claim these incentives to maximize financial benefits.
4 Tax Credits That Could Benefit Your Business
Employee Retention Tax Credit (ERTC)
The employee retention tax credit was introduced to help businesses keep employees on payroll during uncertain times. This refundable credit provides a substantial tax break for qualifying businesses. Even though the program has ended, eligible companies can still retroactively claim it. If you’re unsure about your ERC tax credit eligibility, consulting with ERC specialists can help determine if you qualify.
Research and Development (R&D) Tax Credit
Businesses investing in innovation may qualify for the R&D tax credit. This incentive rewards companies that develop new products, processes, or technologies. Even small businesses and startups can reduce their business tax return liabilities with this credit, making it a powerful tool for reinvesting in growth.
Work Opportunity Tax Credit (WOTC)
The WOTC encourages businesses to hire individuals from targeted groups, such as veterans and long-term unemployed individuals. Employers can claim this credit on their business taxes, benefiting from reduced payroll expenses while supporting workforce development.
Recovery Startup Business ERC Credit
Startups launched during the pandemic may still qualify for the ERC recovery startup business credit. Even if they didn’t meet standard ERC credit qualifications, eligible startups could receive up to $50,000 per quarter in 2021. This credit provides critical financial support to help new businesses establish a strong foundation.
Get Expert Guidance on Tax Credits
Understanding and claiming tax credits can be complex, but the right guidance makes it easier. Verite Diversity Business Fund is here to help businesses access ERC benefits and other valuable incentives. Contact us today to explore your options.