The Best Tax Credits Maryland Businesses Can Claim in 2020
One of your business goals in 2020 should be to claim the tax credits available to you. All of these tax credits have fairly detailed requirements you must meet before the IRS will grant them to you. For example, the tax credits are only available to businesses that file their tax returns electronically, unless the business applies for a waiver from electronic filing. Therefore, it is a good idea to work with a Maryland business law attorney to make sure that you can get the tax credits that will help your business save money and continue to thrive.
Apprentice Employee Tax Credit
The state of Maryland offers a tax credit to businesses that employ persons enrolled in apprenticeship programs accredited by the Maryland Apprenticeship Training Council. You can only receive this tax credit for years in which the apprentice was both employed at your company and enrolled in the apprenticeship program for at least seven months.
Community Investment Tax Credit
If your business donates money, real estate property, or merchandise to the community investment program of a nonprofit organization approved by the Department of Housing and Community Development. To qualify for the tax credit, the donation must be valued at least $500 but not more than $500,000. The tax credit is equal to 50 percent of the value of the donation.
Employer-Provided Long-Term Care Tax Credit
Healthcare costs are a major financial burden to most working Americans, and a health problem that necessitates long-term care spells financial catastrophe for all except the wealthiest people. Therefore, Maryland offers a tax credit to businesses that provide long-term care insurance to their employees. Even very small businesses are eligible; to qualify for this tax credit, you must provide long-term care insurance benefits for at least one employee for the entire tax year.
Enterprise Zone
You can get a tax credit simply for operating a business in a designated Enterprise Zone, which is an economically disadvantaged area where the state endeavors to encourage business growth. You can get additional tax credits for hiring economically disadvantaged employees to work in your business in the Enterprise Zone.
Job Creation Tax Credit
If your business created new jobs in 2019, and these jobs paid your employees at least 120 percent of the state minimum wage, you could be eligible for a tax credit applicable to Maryland state taxes. The number of jobs you must create to qualify for this tax credit depends on the location of your business; businesses in low-income areas must hire fewer employees in order to qualify for the tax credit.
A Business Law Attorney Can Help
Qualifying for tax credits starts long before your accountant begins preparing your tax returns for the previous tax year. Talk to a lawyer now to see what your business can do in 2020 to qualify for tax credits.
Reach Out to Us Today for Help
It is virtually impossible to qualify or tax credits retroactively; work with a lawyer now to make sure that you are meeting the requirements. Contact a Washington DC small business law attorney at Tobin O’Connor Concino P.C. for help.
Resource:
marylandtaxes.gov/business/tax-credits.php
