By Nick Price, CPA, Manager, Tax & Advisory
ASL Real Estate Group
The Inflation Reduction Act (IRA), which was signed into law on August 16, 2022, included expanded and extended tax credits and incentives to encourage energy efficient housing, commercial buildings, and vehicles. Our previous blogs discussed incentives for homeowners (A Greener Home Can Save You Green Under the Inflation Reduction Act) and vehicle buyers (Inflation Reduction Act Restructures Alternative Fuel Vehicle Credit). (more…)
Update for fiscal year 2023-2024: The application periods and allocation amounts have been announced –
- July 24, 2023 – August 14, 2023 ($164 million in tax credits available; $120 million in grants available)
- January 2, 2024 – January 22, 2024 ($164 million in tax credits available)
- March 4, 2024 – March 18, 2024 ($164 million in tax credits plus any remaining unallocated amounts from the previous application periods)
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Action Required On December 1, 2020
In September 2020, California enacted Senate Bill 1447, the Small Business Hiring Tax Credit (SBHTC) to provide financial relief to qualified businesses and encourage hiring and retaining employees. The tax credit is $1,000 per increase in full-time equivalent (FTE) employee up to a maximum credit of $100,000 per employer. Unlike most tax credits, this credit can benefit unprofitable businesses that do not have an income tax liability as the credit can also be applied to offset the payment of sales and use tax deposits. The credit will be administered by the California Department of Tax and Fee Administration (CDTFA) which is requiring employers to reserve an allocation of the credit beginning December 1, 2020. (more…)
The state’s popular California Competes Tax Credit program continues to be available during the 2019-2020 fiscal year. The state has allocated approximately $237 million to be awarded to both small and large business taxpayers. In June, the final award period of last fiscal year, approximately $55 million of tax credits were granted to twenty taxpayers. (more…)
