FBI Industry Partner Event: How do Federal and California tax credits help the Fashion Industry?

As far as businesses located in an Enterprise Zone:

- Beneficial for businesses that are or will be paying taxes based on their net income. It provides a tax credit to offset those taxes paid dollar for dollar.

- By providing these tax credits to offset taxes paid or due, businesses have the capital to reinvest into their business by purchasing more equipment and/or hiring more employees.

- It provides a hiring tax credit to businesses for their employees meeting various criteria (for California purposes).

- It provides a sales/use tax credit on purchases of qualified equipment (for California purposes).

- It provides an additional business expense deduction for California purposes.

- Financial Institutions may take a net interest deduction on their loans to businesses located exclusively in the Enterprise Zone. As a result, businesses may negotiate for a better rate with their lenders.

- Qualified businesses may receive an electrical rate reduction from the Department of Water and Power.



As far as Research and Development Credits:

-Beneficial for businesses that are or will be paying taxes based on their net income. It provides a tax credit to offset those taxes paid dollar for dollar for both the federal and state levels. The credits offset taxes a corporation or individual tax payer would have to pay. The business or individual can amend their corporate or individual tax return and generate refunds on taxes already paid going back up to three years at the state level and four years on the federal level.

-There has to be uncertainty to method, process and/or capability in the product development.

- It helps businesses subsidize their costs in product development and manufacturing new processes.

- For example, specification of designing a piece of clothing, then taking that design and creating a manufacturing process would qualify for Research and Development Credits.

- Functional Changes to clothing would qualify. If a Design is Patentable that would also qualify.

- Developing unique blends of fabric or material would qualify.

- Automated any part of the manufacturing process would qualify.

- Prototyping and testing products would qualify.

- Purchasing specialized machinery would qualify.
Encore Tax Consulting Group, Inc. is a tax credits and incentives consulting company that provides tax expertise in the following areas:

-California Enterprise Zone Credits

-Research and Development Credits

-Federal Empowerment Zone Credits

-Federal Work Opportunity Tax Credits

-Welfare-To Work Tax Credits

-Cost Segregation Study

-Business Consulting
October 30th, 2008 11:00 AM   through   12:30 PM
FBI Resource Center
127 E. 9th Street
Suite 212
Los Angeles, CA 90015
United States
Phone: 213-892-1669
Email:
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