Tax Credit Services: The 5 Basic Functions

Tax credit services are oft-ignored consulting agencies that can save business both large and small thousands of dollars annually in taxes.

Why you Should use a Tax Credit Service

Tax credit services are independent firms that research companies' finances and help the businesses apply for the maximum Federal and State Tax Credits for which the businesses are eligible. Although many businesses use accounting firms to file their taxes, tax credit services employ accountants, attorneys, and IT consultants alike to ensure the maximum tax credit possible.

The Basic Functions

Although all of these services have their own procedures, the basic functions of such a service include:
  • determining a business' eligibility for the Work Opportunity Tax Credit
  • calculating a business' maximum Empowerment Zone Tax Credit
  • researching a business' maximum Renewal Community Tax Credit
  • verifying a business' potential eligibility for the Indian Employment Tax Credit
  • confirming a business' eligibility for varying State Tax Credits, such as R&D Credits, Manufacturing Credits, State Job Creation and Hiring Credits
Average Money Saved by Businesses

Businesses that did not previously employ a tax credit service have saved an average of several thousands or tens of thousands of dollars per year, depending on the size and nature of the business. These services can also go back to previous tax years to identify and apply for tax credits that the businesses missed.