Businesses are looking for every possible means to save money during these tough economic times. One excellent way to save on your taxes is to take advantage of the available corporate tax incentives to California businesses. Your California corporation may be eligible for corporate tax credits including eco credits, vehicle tax incentives and hiring tax credits for veterans.
Corporate Eco Credits
The state of California as well as the federal government offer corporate tax incentives for companies that make an effort to protect the environment, and these incentives are called eco credits. These credits are available when a corporation installs a photovoltaic system, geothermal heat pump, small wind generator or solar water heater, all of which utilize renewable energy technologies. When a company does this, they can receive a deduction of up to $4,000 on a renewable energy expenditure with a total cost of $10,000. When your company buys new research and development equipment, manufacturing and processing equipment, water or air pollution equipment or energy conservation equipment, you may also be eligible for corporate tax incentives of up to ten percent of the cost of that equipment via sales and use credits.
Corporate Vehicle Tax Incentives
Companies can also earn corporate tax credits for the types of vehicles they use for work. If your company uses diesel-powered vehicles or hybrid vehicles that run on electric motors, hydrogen, gas, nitrogen gas or ethanol, then your business may qualify for these vehicle corporate tax credits.
Corporate Hiring Tax Credits For Veterans
Companies may earn significant credits when they hire veterans and employees from other recognized groups in the state of California. There are two programs for which your corporation may be eligible for these benefits, and they are the California Enterprise Zone Tax Credit program as well as the Federal Work Opportunity Tax Credit, which is known as WOTC. The state tax credits are available if your business is located in one of the state's forty-two enterprise zones. If it is, and if you hire veterans who live in the enterprise zone, your company may receive up to $13,000 each year per employee in tax credits. The Work Opportunity Tax Credit may earn your company from $2,400 to $8,400 in tax credits for each eligible employee as well. Another benefit is that if you realize that your company would have been eligible for these credits in recent past years, you may file an amended return to receive the credits, and if you end up with extra credits that you cannot use last year or this year, you may be able to carry over the credits to next year.
Contact a CPA with experience in these corporate tax credits for more information and to see if your company qualifies.
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