Taking Advantage of Tax Credits to Offset the Cost of Implementing New Technology Solution

At TeleData Select we work with many different companies in provide telecom expense management or bill consolidation to help our clients reduce cost and managing the many different telecom invoices they receive.  We also work with different types of companies looking at new and efficient ways to communication within their offices by upgrading their business phone system to the latest VoIP solutions.   In addition, we help our clients source and procure the best internet solutions for their business. This blog post will help you better understand  how taking advantage of Tax Credits to offset the cost of implementing new technology solutions can benefit your company.

Recently, I had lunch with Jonathan Warner, a tax credit and incentives consultant based here in Georgia.  Jonathan and I discussed how companies who upgrade their tools, systems, and other technologies may be eligible for generous tax credit against the costs of training their employees.

The State of Georgia provides up to $1,250 in tax credit per year per employee, which in some cases will cover half of the costs of training employees in new tools, systems, and technologies.  For companies of over 300 employees the savings can be huge!

If your business is looking for ways to fund and upgrade your IT like a new business phone systems, computers, or software, Jonathan and his team can calculate the tax credit and walk the application through the state approval process.

Many of the large mega companies, AT&T for example, have full-time staff that calculate and submit paperwork to the states to take advantage of these types of tax credits. However, many small to medium sized businesses utilize specialists who know how to maximize tax savings via the approved tax credits and collaborate closely with client tax accountants to ensure both compliance and proper reporting.

The best way to determine basic eligibility for tax incentives is to answer a few simple questions:

1. Are we a for-profit enterprise that pays a state corporate income tax?
2. Are we investing in new technologies, equipment, or facilities?
3. Are we hiring Georgians and increasing our employee headcount?
4. Are we purchasing new equipment or making significant capital expenditures?
5. Are we utilizing any of the Georgia ports to import or export goods?
6. Are we training our people because of new technology, equipment, or processes

If the answer is “yes” to any of these questions, the business should be taking advantage of financial incentives.

The best way to take advantage of these incentives is to first contact a credentialed tax advisor to ensure a Georgia corporate tax obligation exists, and that the business is eligible to investigate state tax incentives. Tax Credits and Incentives specialists assist CPA’s and other trusted financial advisors determine eligibility and calculate credits and other incentives, and tax credit experts like Jonathan Warner are available to answer questions from taxpayers and tax/financial advisors.