•  

Local Office Blogs

rss
Feel free to peruse our blog or search for posts based on a specific term.





June 12, 2017

As you may have seen in the news, Kansas has retroactively repealed the exemption from taxation for flow-through income (including income reported on Federal Schedules C, E and F) beginning in 2017.  The bill does reinstate the deductions associated with this flow-through income, such as self-employment taxes, self-employed health insurance and pension contributions, which will help somewhat to lower the tax increase from the flow-through income.  However, the Kansas bill also retroactively increases individual income tax rates effective for 2017 and ends the “path to zero” income tax rates in Kansas which were scheduled to be phased in over the next few years.  The bill was vetoed by Governor Brownback but quickly overridden by the Kansas Legislature. 

For 2017, the previous income tax rates are increased by .3% and a new rate of 5.2% is established for individuals filing married filing jointly with taxable income over $60,000.  For all other individual taxpayers the 5.2% rate will apply to taxable income over $30,000.  Important to note:  the bill does provide that no penalties or interest will be assessed for any underpayment of taxes due to the changes in law, as long as the underpayment is paid on or before April 17, 2018.  As a result, you will likely be able to continue paying any estimated tax payments which have already been established.

Looking forward, the limit on certain itemized deductions is scheduled to be gradually increased from 2018 to 2020 such that 100% of mortgage interest and real estate taxes will be deductible in 2020.  For the year 2018, medical expenses will again become 50% deductible as part of this gradual phase in of increased itemized deductions. 

For most individuals, the new legislation will result in more income tax liability in Kansas.  As a result, Kansas flow-through entities should take steps to reduce the income flowing through to the shareholders/partners/members of these entities.  One immediate step which should be considered is whether the entity will qualify for any Kansas incentives.  We can schedule a meeting with our State Incentive Team to determine what incentives the company would qualify for in 2017 (including tax credits, training grants and other reimbursements).  If the company currently does not qualify, we can work with you to review and potentially restructure current processes and procedures to qualify.  Most of these credits and incentives are not retroactive so it is imperative to get the process started now!  For this and other tax planning or any questions on the recent tax act, please contact your local CBIZ tax advisor. 




October 8, 2015

Molly Wendland, Specialist in CBIZ’s Tax Incentives Practice, gives insight into Florida’s many tax incentive programs in Part 2 guest post.

 

In the previous post, trigger considerations and eligible industries were covered. Today’s post will review the specific programs and benefits available in Florida.

 

Florida’s many programs help companies offset the costs of making investment, adding jobs, and training employees. Specific programs and benefits vary but can include the following:

 

Programs and Benefits

  • Withholding tax refund of $3,000 - $8,500 per new job created
  • Investment tax credit
    o    Minimum capital investment: $25 million
    o    Can apply 5% of investment toward up to 75% of corporate tax liability
  • High impact project grants available to companies in designated high-impact portions of the following sectors – clean energy, corporate headquarters, financial services, life sciences, semiconductors, and transportation equipment manufacturing. Funding is discretionary. Both of the following additional parameters apply:
    o    Available to companies creating at least 50 new jobs within a three year period (or 25 for R&D facility)
    o    Cumulative capital investment requirement of $50 million within a three year period (or $25 million for R&D facility)
  • Incentives for businesses that choose to locate within a special zone:
    o    Enterprise Zone:
    o  Business machinery & equipment sales tax refund
    o  Jobs tax credit (sales tax)
    o  Jobs tax credit (corporate income tax)
    o  Building materials sales tax refund
    o  Property tax credit
    o  Sales tax exemption for electrical energy
    o    Brownfield:
    o  Tax refunds up to $2,500 per job created on a Brownfield site
    o  Other restrictions apply

Additional incentives with lower wage qualifications available to meet the special needs associated with businesses located in rural counties or urban core areas

 

Training Grants

The often overlooked incentive is the training grant, which is available as a unique means of offsetting the cost of job specific training for new employees or for training existing staff on new technology, processes or equipment. Funds are provided to the company on a cash reimbursement basis and can be used for expenses related to on-the-job and/or classroom training. Expenses can include instructor salaries, vendor training costs, training materials, and curriculum development costs to prepare the training materials.

 

Each program is different, and sifting through the requirements and compliance can be confusing at best and frustrating at the worst. Utilizing an expert in this area will produce the results beneficial to your company.

 

If your business is expanding, please contact Molly at MWendland@CBIZ.com or 816.945.5264 to see if your company may be eligible for these incentives.





September 30, 2015

Molly Wendland, Specialist in CBIZ’s Tax Incentives Practice, gives insight into Florida’s many tax incentive programs in part 1 of this 2 part guest post.

 

At the end of each day, we would all like to think that we have acted in our company’s best interest. But what if we haven’t? Have we left the company’s money sitting on the table?

 

Is your company growing? Are you adding jobs faster than you can process the paperwork? Are you making significant capital investment? If so, your company may be in a favorable position to reap the benefits of one or more of Florida’s many tax incentive programs.

 

Like most states, Florida offers multiple programs to companies to help offset the cost of an expansion. Florida incentives can come in many forms, including but not limited to cash; tax credits for new jobs and investment; sales tax credits, refunds, and exemptions; corporate income tax credits, and more.

 

Trigger Considerations

If your company is considering one or more of the following, you may be poised to reap the benefits of these programs:

  • Increasing headcount
  • Acquiring new space, building a new facility or signing a new lease
  • Making significant capital investment
  • Incorporating new technology that requires existing workforce to be trained

It should be noted that incentives are a "but for" proposition (e.g., "But for the incentives offered through the state of Florida, Company X would not have chosen to expand here.") Therefore, it is crucial to begin working on this process prior to making any final decisions on the expansion.

 

Eligible Industries

Florida targets companies that are creating high wage jobs in the following for-profit industries:

  • Manufacturing
  • Life Sciences
  • Financial / Professional Services
  • Clean Tech
  • Research & Development
  • Aviation / Aerospace
  • Homeland Security / Defense
  • IT
  • Global Logistics
  • Headquarters (regardless of industry)

Retail, utilities, mining and other extraction or processing businesses are ineligible.

 

Stay tuned for Part 2 to find out what types of programs and benefits are available. 

If your business is expanding, please contact Molly at MWendland@CBIZ.com or 816.945.5264 to see if your company may be eligible for these incentives.



Tags

Phoenix tax Accounting affordable care act Alex Elliott anna howell Audit audit and assurance Award Awards awards and recognition BEPS Best Places to Work Betty Isler Bill Tapp BizJournals biztips bizwomen Blog Brad Hale brenda brigman bryan koch CBIZ CBIZ KC CBIZ MHM CBIZ MHM Memphis CBIZ MHM Tampa Bay cbiz security and advisory services CBIZ Women's Advantage CBIZBlog CBIZKC CBIZMHM CFO CFO & Controller Conference cfo conference CFO of the Year CFO of the year awards Charity Community Involvement Conference Construction Controller Conversation With Craig Gilman cwa Dave Enick DOL EBP EBP Audits Ed Rataj Employee Benefit Plan Audits Employee Benefits employee engagement EmployeeBenefits EntreprenurialServicesGroup ESG Eustis Corrigan events Food Drive healthcare HR Human Resources Innovation International Tax Jenny Matasic Josh Finfrock Joyce Farris Kansas City KansasCity karen cassella KC CFO Breakfast Series KCEvents linda lauer lloyd grissinger Local Managing Director Manufacturing Mark Baricos MBJ Megan Murdock memphis Memphis Business Journal Memphis Daily News memphis super women in business mentoring monday mergers and acquisitions moira house Networking NFP Not-for-profit Paul Dunham pci compliance Phoenix promotions real estate Revenue Recognition SALT Service Social Committee sonya daniels Sponsorships Start Ups State and Local Tax steve dunavant Success Super Women in Business Tampa Bay Tampa Bay Business Journal tangible property regulations Tax Tax Incentives tax reform The Daily News Top Workplaces Tracey McDonald transaction advisory services Transfer Pricing UMB Bank University of Memphis Volunteer workplace award