GREATER CONROE/LAKE CONROE AREA CHAMBER OF COMMERCE: Hurricane Tax Credits Available to Both Large and Small Business

Regardless of size, any business with employees in the designated Houston disaster area can receive Federal Tax Credits, according to BCN Management, a firm that specializes in identifying state and federal tax credit programs for business.

Greater Conroe/Lake Conroe Area Chamber of Commerce issued the following announcement on Feb. 26.

Regardless of size, any business with employees in the designated Houston disaster area can receive Federal Tax Credits, according to BCN Management, a firm that specializes in identifying state and federal tax credit programs for business. The Congressional Budget Office (CBO) estimates that $681 million will be paid in tax credits in Texas alone.

“With the fiscal year ending for many businesses, now is a good time to conduct an analysis of any business disruption losses in revenue to be applied to the evaluation of available tax credits,” states BCN Management’s Executive Vice President, Tim Norwood. BCN Management has developed its “Operational Impact Analysis” to assist businesses in the evaluation.

On September 29, 2017, President Trump signed into law The Hurricane Disaster Relief Act of 2017 (H.R. 3823, Section 503). The tax relief legislation includes an employee retention credit to encourage employers affected by Hurricane Harvey to retain employees while their businesses return to normal operations.

BCN Management evaluates tax credit eligibility for business in all affected hurricane disaster areas, including the nine-county area of the Houston market.

“While nearly every business with employees can be eligible for the tax credit, the evaluation to maximize the credit can be very complex,” states Norwood. “Several factors need to be evaluated including loss of gross revenues as well as reduction in payroll due to the hurricane.”

Businesses that were disrupted in any manner due to the hurricane with a principal address in the designated hurricane disaster zone are eligible to receive up to $2,400 for each employee retained after Hurricane Harvey. The credit is equal to 40 percent of the first $6,000 in wages paid to the employee after the hurricane, ending on the date the business has resumed significant operations but no later than January 1, 2018.

The credit has a 3-year carryback and 20-year carry forward. Credit can be applied immediately against any estimated tax payments as well as monetized in certain circumstances.

The tax credit applies to employees working at an affected site prior to the hurricane – including all levels and types of employees, employees who weren’t paid during the disruption period, and employees that were moved to alternative locations after the hurricane.

The tax credit can be substantial according to Norwood. A small business with 25 employees could realize as much as $60,000 in tax credits with the amount increasing as the number of employees increase.

BCN Management will assist businesses in the tax credit evaluation at no charge. The firm specializes in identifying and capturing state and federal tax credits for its clients. Comprised of industry-leading professionals, BCN Management has delivered hundreds of millions of tax credits to businesses both large and small throughout the United States for the past 30 years. Its compensation is based on a percentage of the tax credit identified.

Any size business in the Houston area can begin the tax credit evaluation process by visiting the BCN Management website: www.bcnmgt.com.

(For more information, contact Tim Norwood, BCN Management, 843.519.0803; Email: tnorwood@bcnmgt.com)

Original source can be found here.

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