Tax Credit and Incentives
Tax credits and incentives can play an important role in reducing tax liability, improving cash flow, and supporting business investment and growth. With opportunities available at the federal, state, and local levels, identifying and documenting eligible credits requires careful analysis and ongoing planning.
At DSA Advisory, our Tax Credits and Incentives Services help businesses and individuals identify, evaluate, and claim available credits and incentives. We provide guidance on eligibility, documentation, calculation, and compliance across a range of federal, state, and industry-specific programs.
By combining technical expertise with a structured planning approach, we help clients capture available benefits while maintaining compliance with applicable program requirements.
Understanding Tax Credits and Incentives
Tax credits directly reduce the amount of tax owed, while incentives may take the form of deductions, exemptions, deferrals, or rebates. Identifying which programs apply to a given situation requires a clear understanding of eligibility criteria and documentation standards. Our services include support for:
Federal Tax Credits
Federal tax credits are available across a range of activities, industries, and investment types. Identifying applicable credits and maintaining proper documentation helps businesses capture available benefits while supporting compliance. We assist with:
State and Local Tax Incentives
State and local governments often offer incentives to encourage investment, job creation, and economic development. These programs vary widely by jurisdiction and may require advance application or ongoing reporting. Our state and local incentive services include:
Research and Development (R&D) Tax Credits
The research and development tax credit is designed to encourage businesses that invest in qualifying research activities. Determining eligibility and calculating the credit requires detailed analysis of qualifying activities and expenditures. We help clients with:
Energy and Sustainability Incentives
A range of credits and incentives are available for energy efficiency, renewable energy, and sustainability-related investments. These programs can support businesses making qualifying improvements or capital investments. Our energy and sustainability services include:
Employment and Hiring Credits
Certain credits are available to businesses that hire individuals from specific groups or create jobs in designated areas. Capturing these credits requires timely identification and proper documentation. We assist with:
Types of Tax Credits
Tax credits can take different forms depending on how they are applied and whether unused amounts can be refunded or carried forward. Understanding these distinctions helps businesses and individuals plan more effectively. Common types of tax credits include:
Can reduce tax liability to zero but generally do not result in a refund beyond the amount of tax owed
May result in a refund if the credit exceeds the total tax liability
Allow unused credit amounts to be applied to future tax years
May be sold or transferred to another party under certain programs
Tied to qualifying investments in property, equipment, or projects
Based on specific activities such as research, hiring, or energy improvements
Tax Credit and Incentive Compliance
Because credit and incentive programs change over time and often involve detailed eligibility and documentation requirements, ongoing review and planning remain important. Capturing available benefits while maintaining compliance may involve multiple considerations, including:
Tax Credits and Incentives FAQs
What is the difference between a tax credit and a tax deduction?
What is the difference between a refundable and a nonrefundable credit?
What is the research and development (R&D) tax credit?
Who is eligible for tax credits and incentives?
Are tax credits available at the state level?
Do tax credits require advance application?
What documentation is needed to claim a tax credit?
Can unused tax credits be carried forward?
What are employment or hiring credits?
Can small businesses claim tax credits?
How are tax credits calculated?
What is a transferable tax credit?
Can individuals claim tax credits and incentives?
How often do tax credit programs change?
Why work with an advisor for tax credits and incentives?
Capture Available Tax Savings
Identify, document, and claim eligible credits and incentives with a structured, compliance-focused approach to tax planning.Share