For small businesses and investors looking to expand in underserved communities, the New Markets Tax Credit (NMTC) offers significant financial incentives. Designed to encourage economic growth and job creation, this federal program provides tax credits to businesses and real estate projects in qualifying low-income areas. Understanding how the NMTC works can help business owners and investors maximize their benefits while contributing to community development.
New Markets Tax Credit (NMTC) – A Powerful Incentive for Business Growth
The New Markets Tax Credit (NMTC) is a federal program designed to encourage investment in low-income and underserved communities by offering significant tax credits to businesses and investors. In Ohio, the Ohio Department of Development opens applications once a year, making it essential for business owners to plan ahead.
If you’re considering starting or expanding a business, working with a tax CPA and attorney can help you identify eligible census tracts and maximize this valuable tax incentive. By strategically investing in qualifying neighborhoods, you could unlock substantial tax savings while fostering economic development in Ohio.
Ohio Opportunity Zone Tax Credit – Maximize Your Investment Benefits
The Ohio Opportunity Zone Tax Credit Program provides tax incentives to businesses and investors who develop properties or operate businesses in designated Opportunity Zones across Ohio. Managed by the Ohio Department of Development, this program accepts applications once per year and offers a nonrefundable tax credit of up to 10% of an eligible investment.
If you are planning to open a business, expand operations, or invest in commercial real estate, consulting a CPA with tax planning expertise is critical. Understanding how to structure your investment in an Opportunity Zone can help you reduce tax liability, defer capital gains, and take advantage of long-term savings.
Business Income Deduction – A Key Tax Break for Small Business Owners
In Ohio, small business owners can benefit from the Business Income Deduction (BID), which allows the first $250,000 of qualifying business income to be deducted from taxable income. However, correctly classifying and reporting your income is essential to take full advantage of this deduction.
Not all income qualifies as “business income” under Ohio tax laws, and misclassification could lead to compliance issues or lost tax savings. A qualified tax CPA can help ensure that your earnings meet the necessary criteria, navigate any exceptions, and maximize your deduction.
Unlock Tax Savings for Your Business – Get Expert Guidance Today!
Navigating tax credits and deductions can be complex, but you don’t have to do it alone. Whether you’re exploring the New Markets Tax Credit, Ohio Opportunity Zone Tax Credit, or the Business Income Deduction, working with an experienced CPA ensures you maximize your savings while staying compliant. Schedule a consultation with Jay My CPA today to take advantage of these valuable tax incentives and grow your business!
