As part of the Coronavirus Aid, Relief and Economic Security (CARES) Act, an Employee Retention Credit (ERC) was introduced to encourage employers to retain employees during the recent pandemic by offering them a refundable tax credit that can be used to offset the costs of employee retention. There are no specific limitations on how the business should use these funds.

EIAG helps clients by outlining a reasonable basis for claiming the ERC, scoping activities such as receiving PPP forgiveness or contributing toward employee health benefits, and subsequently quantifying and applying for the estimated tax credit benefits.

Learn more in our online guide, ERC: Employee Retention Credit. A Definitive Guide [2023].

Many states are introducing what they call “Covid-Pilot” programs. Depending on state, these programs will provide a cash benefit, tax credit or payroll tax reduction. States are encouraging companies to hire and train employees. They recognize these are challenging times and providing economic assistance to help companies maintain through this unprecedented period.

Our firm, EIAG, will help your company determine if you have facilities/offices/operations are located in states that have Covid-Pilot programs.

We will help with the following:
• Qualification requirements
• Funding levels
• Application due dates
• Required reporting

In most cases, the program will provide a set amount of funds for each employee hired and/or trained during the pandemic. Some states will provide a retroactive component to the program. This means a company may be able to “look-back” to jobs created during first quarter of 2020 through to present. Please also keep in mind, not all states have an established Covid Pilot program. EIAG will help you assess.

We believe the most important part of the incentives process is the compliance and administration. This step takes place "post" award or after the negotiation of the incentives are complete. Often times a company engages an attorney or site consultant to negotiate the economic incentives package. Frequently, the amount negotiated can be in the millions of dollars. Fees are then paid to the consultant, real estate group or attorney, and the management of the incentives is turned back over to you, the client. This practice, in our opinion, is not fair or equitable to you. The administrative challenge and true expertise is needed post-award. This is after the state or city sends you the award letter.

"Most consultants charge the bulk of their fees at the time you receive your award notice from the state. This does not make sense because you, the client, have not received your first dollar or claimed your credits yet. You are substantially out of pocket at this time. The true work begins post-award. This is the reporting the state needs to release your funds or for your company to claim your tax credits. At EIAG, the main portion of our fee is paid AFTER you claim your credits or receive your grant funds. That is the sign of a true partnership. We are primarily paid after you claim your benefit." Bryant Colman – Managing Principal – EIAG

(According to several studies and surveys, utilization of incentives is less than 12% of the total award available. Our clients typically achieve 90% + utilization of their incentives.)

Training incentives are a core offering provided to businesses at the Federal, state, county and local levels. The purpose of this type of incentive is to award and encourage employers to invest in training their workforce. Most employers are not aware these funds are available to them; and when there is some level of familiarity, they believe the administrative requirements and too burdensome to pursue.

We research, manage and administer training grants, credits and pay-for- performance programs across the U.S. The benefit to an employer can range from $25,000 to $5 million depending on the state, county and city where your company has a presence.

The economic benefit for the employer, depending on location, comes in the form or cash or tax credits. Prior to engaging on a project, we will forecast the economic benefit and provide an overview of the administration. Once your company is approved for the funding or credits, we assign project managers to administer the program and attain maximum benefit. Most clients then continue to apply for the funding year-over-year.

The Research and Development Tax Credit (R&D Tax Credit) is one of the most significant tax incentives available to tax payers. It is also a program most companies are unaware is available to reward their day-to- day activities that produce or improve a product, process, technology or system.

Almost all industries, with new changes to the program, qualify for the R&D credit. The R&D Credit is a government-sponsored benefit that provides cash incentives for companies conducting R&D in the U.S.
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EIAG’s R&D Tax Credit Practice Group will help you determine if you qualify— at no cost. Once it is determined a company is eligible; EIAG will (1.) interview personnel involved in R&D, (2.) develop written memorandums of qualified activity, (3.) report development and (4.) the final delivery report, which provides the supporting documentation to claim the credit.
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*Congress has made the R&D Tax Credit permanent. Additionally, the two following changes are substantial: (1.) Qualified businesses can claim the R&D Tax Credit and apply it towards payroll taxes (essentially making it refundable.) If you qualify, you will lower your 2017 labor costs significantly. (2.) The credit can be applied against a business’s AMT.

The Work Opportunity Tax Credit (WOTC) has been the marquee hiring credit in the U.S. for over 20 years. This is a Federal program. The financial benefit to an employer is up to $9,600 for every qualified hire. For most companies, 12-17% of your new hires will qualify.

EIAG will screen your new hires for these credits. For many clients, these credits generate a new revenue stream. You do the hiring; we help you claim the credits.

Other Hiring Credits: Throughout the country, there are other hiring related tax credits. Depending on where your facilities are located; the credits can be awarded at the state and local level. These credits are designed to award companies that are creating jobs. Most of the credits at the state level can range from $500 - $5,000 per new hire.

EIAG will analyze your locations and determine if there are state and local hiring credits available.

Federal and state incentives are available to almost all companies, and of all sizes. Federal programs are traditionally more uniform. The economic benefit and qualification requirements are standardized throughout the country. The state programs vary by state. Qualification requirements, economic benefit, funding amounts and guidelines vary. Some examples of how a state can deliver the benefit to a company include cash grants, tax credits, payroll tax relief, property tax reductions, utility discounts, infrastructure abatements, sales and use tax benefits and other forms of economic incentives.

There are thousands of incentives available at the federal and state level. The incentives available to your company will be determined by a number of factors. These include such things as business location, industry type, equipment purchased, training delivered to employees, and hiring trends.

EIAG will analyze your company, at no cost, and determine if there are incentives that your company is entitled to receive and has not claimed. In some states, a “look-back” is permitted and missed opportunities from prior years can be captured generating a tax refund. There will be other incentives simply based on your current business activity that can be claimed going forward. In these cases, EIAG will develop a process to make it efficient for the client to claim your credits or grants going forward. For the cash programs, checks will be issued to your company. For the tax credit programs, reporting will be coordinated with your CPA/Accounting firm so your company can realize the benefits on your quarterly estimated tax payments or final return.