Tax Incentives

Catalog of Federal Domestic Assistance

Catalog of Federal Domestic Assistance (CFDA) provides a full listing of all Federal programs available to State and local governments (including the District of Columbia); federally-recognized Indian tribal governments; Territories (and possessions) of the United States; domestic public, quasi- public, and private profit and nonprofit organizations and institutions; specialized groups; and individuals.

As of July 17, 2012 detailed program descriptions are listed for 2,238 Federal assistance programs.

The Internet and GSA’s free CFDA website at http://www.cfda.gov will be the primary means of disseminating the Catalog.

Work Opportunity Tax Credit (WOTC)

The Work Opportunity Tax Credit (WOTC) is a Federal tax credit incentive that the Congress provides to private-sector businesses for hiring individuals from twelve target groups who have consistently faced significant barriers to employment. The main objective of this program is to enable the targeted employees to gradually move from economic dependency into self-sufficiency as they earn a steady income and become contributing taxpayers, while the participating employers are compensated by being able to reduce their federal income tax liability.

Energy-Efficient Appliance Manufacturing Tax Credit

Department of Treasury

Tax Relief and Job Creation Act of 2010    

Act §709 – Modification and Extension of Energy Efficient Appliance Credit for Appliances Produced After 2010

In General

The Tax Relief and Job Creation Act of 2010 modifies and extends the energy efficient appliance credit for certain dishwashers, clothes washers, and refrigerators manufactured after December 31, 2010.

Modified Accelerated Cost-Recovery System (MACRS)

Department of Treasury

Incentive: Under the federal Modified Accelerated Cost-Recovery System (MACRS), businesses may recover investments in certain property through depreciation deductions. The MACRS establishes a set of class lives for various types of property, ranging from three to 50 years, over which the property may be depreciated.

Information:   http://www.irs.gov/publications/p946/ch04.html

Energy-Efficient Commercial Buildings Tax Deduction

Energy-Efficient Commercial Buildings Tax Deduction

Department of Energy

Incentive: The Energy Policy Act of 2005 included a new tax incentive, backed and advocated by the National Electrical Manufacturers Association (NEMA) and the Natural Resources Defense Council (NRDC), to improve the energy efficiency of commercial buildings. The "Commercial Building Tax Deduction" establishes a tax deduction for expenses incurred for energy efficient building expenditures made by a building owner. The deduction is limited to $1.80 per square foot of the property, with allowances for partial deductions for improvements in interior lighting,

U.S. Foreign-Trade Zones (FTZ) Program

Through the U.S. Foreign-Trade Zones (FTZ) Program, a company can reduce their production, transaction, and logistics-related costs.

Foreign-trade zones are secure areas under supervision of U.S. Customs and Border Protection that are considered outside the customs territory of the United States for the purposes of duty payment.

Located in or near customs ports of entry, they are the U.S. version of what are known internationally as free trade zones.

The FTZ Program licenses local agencies in all 50 states and Puerto Rico to establish FTZ locations where foreign merchandise can be imported and warehoused. FTZ Program benefits include delayed or reduced payment of duty rates on foreign goods that enter the U.S.

Renewable Energy Grants

Renewable Energy Grants

Department of the Treasury

Internal Revenue Service

Incentive: The Section 1603 Grant Program is a renewable energy grant program that is administered by the U.S. Department of Treasury. This program allows taxpayers eligible for the federal business energy investment tax credit (ITC) to take this credit or to receive a grant from the U.S. Treasury Department instead of taking the business ITC for new installations. The program also allows taxpayers eligible for the renewable electricity production tax credit (PTC) to receive a grant from the U.S. Treasury Department instead of taking the PTC for new installations.

Renewable Energy Production Tax Credit (PTC)

Renewable Energy Production Tax Credit (PTC)

Department of the Treasury

Internal Revenue Service

Incentive: The Production Tax Credit (PTC) reduces the federal income taxes of qualified tax-paying owners of renewable energy projects based on the electrical output (measured in kilowatt-hours, or kWh) of grid-connected renewable energy facilities.

Incentives depend on the type of energy. The tax credit varies from 1.1-2.2¢/kWh.

Eligibility: Wind, closed-loop biomass, open-loop biomass, geothermal, solar, small irrigation power, municipal solid waste, qualified hydropower production, marine & hydrokinetic renewable energy.

Renewable Energy Investment Tax Credit (ITC)

Renewable Energy Investment Tax Credit (ITC)

Department of the Treasury

Internal Revenue Service

Incentive: The Investment Tax Credit (ITC) reduces federal income taxes for qualified tax-paying owners based on capital investment in renewable energy projects (measured in dollars). The ITC generally allows taxpayers to take a single tax credit against the project's tax basis equal to 30% in its first year and allows a taxpayer to elect certain qualified facilities to be characterized as energy property eligible for a 10% or 30% ITC, depending on the technology.

Incentives depend on the type of energy.

Foriegn Trade Zone Boards

Foreign Trade Zone Boards

Department of Commerce

Import Administration

Incentive: A foreign-trade zone is a designated location in the United States where companies can use special procedures that help encourage U.S. activity and value added – in competition with foreign alternatives – by allowing delayed or reduced duty payments on foreign merchandise, as well as other savings.