Federal Tax Credits

The Work Opportunity Tax Credit creates a hiring incentive on the federal level by offering tax credit valued up to $9,600 per eligible new hire. This credit is available to companies that hire individuals from the following groups:

  • Families that qualify for food stamps
  • Families that qualify for TANF (cash benefits)
  • Qualified ex-felons, as well as work release, paroled and pardoned individuals
  • Qualified veterans
  • Qualified summer youths
  • Vocational rehabilitation referrals
  • Qualified individuals living in a Rural Renewal Community or Empowerment Zone
  • Qualified Supplemental Security Income (SSI) Recipients
  • Unemployed individuals who have collected UI at some point during their unemployment

Per IRS regulations, companies in the food and beverage industry may qualify for credits based on Medicare and social security taxes on tips their employees receive. In order to qualify, an employer must:

  • Hire employees who may receive tips for serving or delivering beverages or food, particularly in an industry where tipping is standard
  • Have paid employment taxes on said tips.
The credit amount equals the amount paid in Medicare and social security taxes on those tips. However, tip amounts do not qualify if they are used to meet minimum wage requirements.

The Research & Development Tax Credit (R&D) provides tax incentives to qualifying companies to help expend the cost of investments and research efforts aimed at developing new and improved processes or products. This credit is open to all companies, not solely those in the technical field.

As of December 2003, IRS Regulations are retroactive, which has made qualification easier. State R&D credits may also be available.

State Tax Credits

There are more than 3,000 types of tax credits and incentives employers may qualify for nationwide. TC Services USA is able to assist its clients in determining if they qualify for these lucrative incentives.

Business Tax Incentive Zones are created by local, state, and federal government institutions, and are offered to local businesses to encourage them to expand or develop in specific regions of the United States. Thousands of these zones are managed and funded throughout the country, which can create an often time-consuming and overwhelming application process. Let TC Services USA save you time and money with our expert compliance team, dedicated to maximizing your potential tax credits.

TC Services USA will uncover many different types of eligible tax incentive zones, such as Manufacturing Enhancement Areas (MEA Zones), Enterprise Communities (EZEC), Targeted Tax Areas (TTA), Federal Empowerment Zones, Federal Zones (EZ) and Communities (EC), and will determine which incentive is right for you.