Corporations in California can save big by taking full advantage of state and federal corporate tax credits. These can encompass federal hiring credits, along with enterprise zone credits that may include vehicle tax incentives for qualifying cars and trucks. Unfortunately, many businesses are unaware of these incentives, which can eliminate a large portion of their corporate tax. However, now is the time, before your company files its tax returns, to check in with a certified public accountant with expertise in corporate tax planning and determine which corporate tax may be available for your company's use.
Hiring tax credits are provided to companies by both the state of California as well as the federal government. The federal program is called WOTC, or the Work Opportunity with corporate tax consultants in dubai. Your corporation can earn these federal hiring credits when you employ people from certain groups. These can include qualified disabled veterans and veterans who are eligible for food stamps, those who were laid off or are being threatened with a lay off, people of Native American or Pacific Islander descent, certain summer youth hires and ex-felons, and those who are eligible for or receive SSI, temporary assistance for needy families or food stamps.
When your corporation hires people from any of these recognized groups, your company may then receive federal hiring credits ranging from $2,400 to $4,800, based in part on the wage they earn as well as to which group they belong. Many times, these federal hiring credits go unused simply because businesses do not realize that they qualify for them, so do ask a CPA familiar with these tax benefits how they may apply to your taxes.
In addition to federal hiring credits, your corporation may also be eligible for state-based hiring tax credits. These can be connected to enterprise zone credits as well. California has forty-two enterprise zones, where businesses are encouraged by the state to set up shop and hire people through the use of these state tax credits. Employees of your company within any of the above mentioned groups may also qualify your corporation to receive up to an additional $13,000 per employee annually.
Other corporate credits may be found in vehicle tax incentives. When your company in an enterprise zone makes the switch to hybrid or diesel vehicles, you can earn tax credits for doing your part to protect the environment on the job.
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