Smart investments in tax strategy and tax processes can pay off big down the road.
The automaker was awarded $60 million in credits before it closed its Lordstown, Ohio, plant.
Big changes in the R&D tax credit spawn major savings for small businesses and startups.
Thanks to the credit’s now-permanent status, companies can factor a federal income tax reduction into their financial planning.
In addition to the one-time credit, the tire company says it won't have to pay cash taxes in the U.S. for five years.
"Limits on the ability [of startups] to use tax losses can significantly increase the cost of capital and marginal effective tax rates, says a think tank.
If the tax credit were made permanent, companies could accurately budget for future R&D spend.
Considering the gain to be had from tax credits and incentives, not meeting with tax executives doesn't seem to make much sense, research suggests.
Keeping abreast of the latest state-tax credits is a full-time job. But it can pay off for small and even larger firms at tax time.
