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Tax Credits and Incentives

Discover new ways to expand your business with the help of federal and state funding and guidance from Anders.

Uncover Valuable Tax Credits to Make Business Dreams a Reality

Federal and state tax credits and incentives can help fund new business ventures and offset project expenses. Whether your company is adding jobs, investing in new technology or expanding its footprint to additional locations, there are credits designed to help fund these projects. The Anders team will help identify relevant credits and incentives that can work for your business.

Hiring Tax Credits and Incentives

Hiring tax credits and incentives can help fund business goals of adding new staff to expand operations.

  • Work Opportunity Tax Credit
    • The Work Opportunity Tax Credit is a federal credit that allows businesses to take a tax credit of up to 40% of qualified first-year wages for certified workers.
  • Missouri Works Program
    • The Missouri Works Program is a state incentive that allows Missouri businesses to save on state withholding tax for new jobs and/or receive state tax credits, based on a percentage of payroll of the new jobs.
Energy Efficiency Tax Credits and Incentives

There are a variety of federal and state tax credits and incentives for businesses investing in renewable energy and energy efficient upgrades. Our advisors help businesses take advantage of these opportunities, including:

  • Geothermal Tax Credit
    • The Geothermal Tax Credit is a federal credit for homeowners that purchase and install a geothermal heat pump system. In 2020, homeowners can claim 26% of the purchase and installation amount and that percentage decreases to 22% in 2021. There’s no limit to the value of the credit, and as long as you still own the house where the system is installed, you can claim the true percentage based on the year you installed the system.
  • 45L Energy Efficient Tax Credit
    • The 45L Tax Credit is an energy-efficient tax credit for residential properties. The tax credit is $2,000 per unit to the developers of energy-efficient buildings. Qualifying properties include apartments, condos, townhouses and single-family homes. All eligible properties must be three stories or lower and have to incorporate energy-efficient features such as roofing, windows, doors or HVAC systems.
  • 179D Tax Deduction
    • 179D allows for an accelerated tax deduction for installing energy-efficient property in commercial buildings. Building owners can take up to $1.80 per square foot deduction if they install property that results in energy and power cost reductions.
R&D Tax Credit

The Research and Experimentation Tax Credit, or R&D Tax Credit, offsets federal income tax liabilities for eligible research and development expenses dollar-for-dollar. The credit can also be used to offset payroll tax liabilities for eligible small businesses.

Real Estate Tax Credits and Incentives

Real estate developers can take advantage of several tax credits and incentives depending on the property type and location. Aside from 1031 exchanges and cost segregation studies, below are two valuable credits for real estate.

  • Historic Tax Credit
    • Historic Tax Credits are state credits for the rehabilitation of a commercial or residential property. Eligible properties can receive a credit for 25% of the renovation costs to be used against state tax liability.
  • Low Income Housing Tax Credit
    • The Low Income Housing Tax Credit Program is a federal program that offers developers a dollar-for-dollar credit to construct or rehabilitate affordable rental housing for low-income households.
State and Local Tax Credits and Incentives

Our State and Local Tax (SALT) advisors help businesses navigate applicable state and local laws and take advantage of credits and incentives. We track tax trends, policies and regulations across the U.S. and offer ways to minimize your tax burden.

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Industries We Work With

No matter the size of your business or your unique credits and incentives’ needs, our specialists focus on the following industries and serve others as well:

Success Stories

Saved Manufacturer Over $350,000 Through R&D Study

Our manufacturing client had utilized the Research & Experimentation (R&D) tax credit in the past, but our team questioned if they were getting the maximum benefit from their current method of capturing research wages and related costs. By completing a full R&D study, we identified additional wages and supplies that could be included to bolster the client’s R&D credit opportunities for each year of the study. By amending the prior three years of tax returns, our team discovered over $350,000 in additional savings.

Tax Reform Corporate AMT Repeal Saved Client $50,000 in R&D Tax Credits

Under the old tax code, our client was subject to alternative minimum tax (AMT) and could not receive a benefit of research and development (R&D) credits. Once that rule was lifted, we suggested that the client take advantage of R&D credits. We have been able to claim Federal tax credits of nearly $50,000 for the company so far in years one and two.

Procured Over $3 Million in Economic Incentives for Facility Expansion

A St. Peter’s based manufacturer had a facility expansion that called for the creation of 125 additional jobs, new equipment needs and an ongoing training initiative. We negotiated with the Missouri Department of Economic Development to procure nearly $2,600,000 in benefits from the Missouri Works program, $680,000 in property tax abatement and $100,000 in training grants.

Identified $60,000 in R&D Tax Credits for Manufacturer of Custom Tools and Dies

An R&D Tax Credit study was performed for a client specializing in rapid turnaround and high volume engineering and manufacturing of custom tools and dies. The study identified $1,150,000 of Qualified Research Expenses (QREs) for the tax year 2015, resulting in a federal benefit of approximately $60,000 in tax credits.

Assisted Missouri Manufacturer in Securing $3.5 Million in Tax Incentives

Due to our familiarity with the Missouri Works program and the Chapter 100 Bond process, we assisted a Missouri-based manufacturer contemplating systematic plant expansion, equipment purchases and job additions in the procurement of state, city and local tax incentives in excess of $3.5 million.

Secured $2.5 Million in Economic Incentives

Assisted a client with plans of adding jobs, purchasing equipment and expanding their manufacturing facility secure over $2.5 million in economic incentives from state, county and local governments through the Missouri Works program and the Chapter 100 bond process.

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