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The Impact of Tax Credits on Your Business

  • Writer: Brian R. Schobel, CPA
    Brian R. Schobel, CPA
  • Oct 8
  • 2 min read

Running a business isn’t just about sales and expenses — it’s also about being smart with taxes. One of the most overlooked tools for small business owners is tax credits. These aren’t just deductions; they’re direct savings that can reduce what you owe to the IRS dollar-for-dollar. In short: a credit can mean real money back to your business.

 

What Makes Tax Credits So Valuable

Think of tax credits as rewards for doing the right things — hiring, innovating, or going green. They not only cut your tax bill but also encourage business growth and community impact.


Popular Tax Credits You Might Qualify For

  • Work Opportunity Tax Credit (WOTC): Get rewarded for hiring veterans or individuals facing employment barriers.

  • Research & Development (R&D) Credit: Even if you’re improving an existing product or process, you may qualify.

  • Energy Efficiency Credit: Installing solar panels or upgrading to energy-saving equipment? That can earn you a credit too.

  • Disabled Access Credit: If you’ve made your facility more accessible, you could benefit from this incentive.


Tips to Make the Most of Tax Credits

  • Plan early: Don’t wait until tax season. Incorporate credit opportunities into your yearly budget.

  • Track everything: Keep records of hires, upgrades, and projects. Documentation is key.

  • Work with a pro: Tax rules change often — your accountant can help uncover credits you didn’t know existed.


The Takeaway

Tax credits can feel complicated, but they’re worth exploring. Every dollar saved through a credit is a dollar you can reinvest — in new equipment, more staff, or simply keeping your business thriving. Don’t leave money on the table this tax year — plan now, and let those credits work for you.



 
 
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