12 Tax Incentives to Help Businesses Grow

In 2024, there’s a treasure trove of business tax incentives many companies overlook. These incentives are not just a nice bonus for your bottom line, but often substantial opportunities that can support your business growth, innovation, and sustainability. 

Here, we explore 13 common yet underutilized tax incentives and give you insights into how they can benefit your business operations.

Types of Tax Incentives For Businesses

Business tax incentives come in various forms, including credits, deductions, and deferrals. Many of these incentives aim to stimulate economic growth, encourage your business to undertake activities beneficial to society (like hiring disadvantaged groups or investing in green technologies), or support the economy during downturns.

For example, the Employee Retention Credit (ERC) rewards businesses that retained employees during the pandemic. While the credit is based on your situation in 2020 and 2021, it’s still available to claim through 2024. Meanwhile, incentives like the Work Opportunity Tax Credit reward businesses for hiring from specific groups, fostering a diverse and inclusive workforce.

By reducing your tax burden, these incentives make it more feasible for your business to invest in your employees, R&D, and building improvements. Your business will be able to grow faster.

12 Underutilized Tax Incentives For Businesses

1. Vehicle Mileage Deductions: You may be able to deduct your mileage and other vehicle-related business expenses based on IRS guidance.
2. Work Opportunity Tax Credit (WOTC): The federal government encourages inclusion by offering a tax break for hiring individuals from certain groups that have faced significant barriers to employment. These include veterans, people who were formerly incarcerated, recipients of SSI benefits, and more.
3. Employee Retention Credit (ERC): This tax credit for retaining employees during COVID-19 is still available to claim through 2024.
4. 1099 Self-Employed COVID Leave Tax Credit: Another tax credit that supports self-employed individuals who faced challenges during the pandemic. This credit is still available to claim through 2024.
5. Employer-provided Childcare Credit: Claim a tax credit for fostering work-life balance by offering childcare.
6. Opportunity Zones: The federal government rewards investment in distressed areas to promote economic growth and development in the areas that need it most.
7. Clean Vehicle Credits: These credits incentivize the purchase of electric and fuel cell vehicles, aligning with environmental sustainability goals.
8. Energy-efficient Commercial Buildings Deduction: This deduction rewards increased energy efficiency in building systems, which helps with sustainability.
9. Credit for Builders of Energy-efficient Homes: The government encourages sustainable housing construction with tax credits for the builders.
10. Advanced Energy Project Credit: This credit supports sustainable energy projects, encouraging innovation and green initiatives.
11. Research Credit: The federal government promotes innovation through tax credits for qualifying research activities, driving technological advancement.
12. Rehabilitation Credit: You can claim a tax credit for investing in the rehabilitation of historic buildings, which preserves cultural heritage while fostering economic activity.

Navigating the Tax Incentive Maze with LG Resources

Understanding and applying tax benefits can be daunting, especially with more complicated incentive programs like the Employee Retention Credit (ERC). LG Resources is poised to guide your business through this maze, ensuring that you capitalize on every opportunity to save. From leveraging the 1099 Self-Employed COVID Leave Tax Credit to finding specialized local and state incentives, our expertise is your asset in unlocking potential savings and fostering growth.

The pathway to optimized tax strategy and business expansion is rich with opportunities. By embracing these tax incentives, businesses can realize substantial benefits, driving innovation, sustainability, and inclusivity forward. Partner with LG Resources today to ensure your business leverages these powerful incentives for a brighter and more prosperous future.