Finding ways to increase cash flow can be challenging for some business owners. State credit and incentive programs may help improve your business balance sheet. You may qualify if you are planning any of the following initiatives:
- Investing in research and development
- Making “green” or environmentally friendly upgrades or changes to infrastructure
- Creating jobs
In addition to credits and incentives, your business may be eligible for grants, low-interest financing or reduced utility costs.
The opportunities available vary, but even during this tough economy, your state may have programs that will benefit your business such as the Manufacturer’s Purchase Credit in Illinois. Federal opportunities, such as the Small Business Job Creation Tax Credits, are available as well.
How Credits Work
Credits are designed to encourage specific activities within your state. They are typically claimed on a taxpayer’s state or local income, franchise, or net worth tax return and may be carried forward if unused in the current year. Some are even refundable. It’s important to note that some credits require pre-approval from the government agency awarding the credit.
How Incentives Work
Incentives are benefits that are negotiated with state or local economic development, taxation, or other government officials as an inducement to locate or expand operations in a specific jurisdiction. Incentives must be negotiated well in advance with the government agency awarding the incentive. We have significant experience negotiating these incentives for our clients.
There are several state, federal and utility incentives available that could benefit your organization. Our energy services team can determine which incentives you qualify for; and help you develop the appropriate incentive application documents. Our licensed professional engineer (PE) can certify the detailed building inspections and energy studies required in order to qualify for federal tax deductions that are allowed for energy efficiency improvements.
Energy Usage Analysis
Let our experts perform an energy usage analysis to determine if there are savings available to your organization in the form of cost containment, usage patterns, waste, etc.
Utility bill analysis
Review historical utility bills to determine if costs, usage levels, or usage patterns indicate equipment problems, operational problems or unfavorable rate selections.
Building energy assessments
Our experts can identify sources of energy waste and recommend corrective actions by performing certified building inspections. Inspections focus on your specific needs from a very simple lighting survey to a detailed engineering system analysis.
Our energy assessment services include a vendor cost comparison in order to provide comprehensive risk services. This comparison helps you understand where savings are available.
Our energy experts can evaluate competitive fee structures, where applicable, to determine which provider will provide the most economical services based on your usage patterns.
Our energy experts provide independent cost/benefit analysis of various vendor offers for the installation or retrofit of lighting, HVAC, windows or insulation. Detailed reports support your decisions.
We provide detailed economic analysis of renewable energy and co-generation projects to determine the cost feasibility and identify all monetary incentives.
Brown Smith Wallace has an experienced team versed in how to identify and leverage tax credits and incentives for business owners. Contact Brown Smith Wallace today to learn how we can support your business.