Developing a small business start-up into a successful ongoing concern under the present economic conditions is a challenging task to say the least. Such an endeavor is be made easier to accomplish when one applies one or more of these little-known government and industry advocacy group incentive programs available to today’s start-up entrepreneurs.
Credits, Grants and Other Incentives
Having an understanding of existing tax law can actually help a new start-up business save money. Small businesses with capital expenses below $2 million can deduct up to $500.000 in expenses pursuant to Section 179 of the Tax Code. This and other tax credits encourage the start-up entrepreneur to go “all in” during the early stages of a start-up business with respect to investing in its growth.
Economic Development and Pooled Financing Incentives
Incentive programs that target job creation along with infrastructure development work through the use of pooled resources are regarded as special economic development programs. Use of this type of creative financing program permits an employer to use its withholding and/or sales taxes (or other revenues) to repay debt service. The surplus cash flows help the business create jobs and rebuild infrastructure projects within the community.
Small Employer Jobs Programs
Local and state wage incentive programs exist to encourage new start-up businesses to offer young and/or jobless people an opportunity to obtain employment in geographic areas in the grip of severe recession and weak job markets. These incentives often come in the form of direct subsidies for wage payments to qualifying small employers. Often these programs are aimed at small business operators who can fill job vacancies with folks who traditionally suffer from chronic, high unemployment.
Procurement and Technical Assistance
Some states provide assistance to new and growing business operators in the form of government procurement contractor assistance. Government agencies regularly make large purchases of goods and services from the private sector. Being able to bid on and win a government contract can make the difference between success and failure. Technical and procurement assistance programs help because they connect growing business with the procurement process by matching products/services with contract bidding opportunities.
Renewable and Sustainable Energy Tax Credits
Changes to existing federal law recently made it possible for small business owners to accept renewable-energy tax incentives in the form of grants instead of tax credits. The U.S. government has recognized that certain small businesses — those without actual tax liability would not otherwise benefit from this form of business development incentives. Further information about this incentive program is available on the U.S. Treasury web site.