Alan Tsarovsky talks about how to identify tax credits at the HABU Conference 2022.
How much cash is your business leaving on the table across state lines?
Most entrepreneurs look at taxes through the lens of liability—reacting to what they owe at the end of the year. In this video, we explore a more powerful strategy: the Activity-Based Approach. By focusing on what your company is already doing—hiring, training, and expanding infrastructure—you can unlock a “tax toolbox” of over 3,500 state and local incentives.
Statutory vs. Discretionary Credits: What’s the Difference?
- Statutory Credits: These are “written into the law.” If you perform the activity (like hiring from a specific zone), you are entitled to the credit.
- Discretionary Credits: These are negotiated. If you are planning a move or a major expansion, you can work with local governments to secure custom incentive packages before you break ground.
Key Drivers for State Tax Incentives:
- Job Creation: States want high-tech, aerospace, and healthcare jobs. Commitments as small as 5–20 new hires can trigger significant benefits.
- Workforce Training: A trained workforce is less likely to turn over. States will often pay you to retrain your team to keep their economy stable.
- Capital Investment: Whether you own the real estate or not, investments in Equipment, Logistics Centers, and Green Tech are massive qualifiers.
Why Proactive Planning Beats Reactive Filing: Don’t wait until you’re filing in Georgia, New Jersey, or Texas to see if you qualified for anything. We discuss how to look at your portfolio of manufacturers, exporters, and tech firms to identify multi-state solutions that provide immediate tangible cash value.
