I’ve had a lot of active duty and veterans over the years open businesses. If you’re thinking of starting a business, or operating a business with veteran employees, we’ve compiled some great tax incentives you and your CPA need to know about.
Disabled Access Credit: This tax credit is available to small businesses that incur expenses related to making their facilities more accessible to individuals with disabilities. The credit is worth up to 50% of the eligible expenses, up to a maximum of $10,250 per year.
Work Opportunity Tax Credit: This tax credit is available to employers who hire individuals from certain targeted groups, including veterans, individuals with disabilities, and those who have been unemployed for an extended period. The credit can be worth up to $9,600 per eligible employee.
Disabled Veteran Tax Credit: This tax credit is available to employers who hire disabled veterans. The credit can be worth up to $4,800 per eligible employee.
Small Business Health Care Tax Credit: This tax credit is available to small businesses that provide health insurance to their employees. To be eligible, the business must have fewer than 25 employees, and the average salary of those employees must be less than $50,000 per year. The credit can be worth up to 50% of the employer’s contribution to the employees’ health insurance premiums.
Uniformed Services Employment and Reemployment Rights Act (USERRA) Tax Credit: This tax credit is available to employers who provide differential pay to employees who are called to active duty in the military. The credit can be worth up to 20% of the differential pay.
Whether you’re thinking about starting a new business, or hiring veterans, these tax incentives can help you keep more of your money. Remember the first step to running a successful business is to have a solid foundation. Let us know if we can help with forming an LLC, estate planning, or if you need a good CPA.
DISCLAIMER: The above material has been prepared for informational purposes only, containing opinions of the provider, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. Please consider consulting tax, legal, and accounting advisors before engaging in any transaction.