SP Group, P.C. (www.spgrouppc.com) is pleased to announce that they are available to help small business clients apply for the Nebraska Microenterprise Tax Credit. This is a refundable credit available to individuals and businesses with demonstrated or anticipated growth. For 2022, this credit is now up to $20,000 per individual or business (double the amount of the previous maximum credit). The team at SP Group, P.C., works with their small business clients to determine if they are eligible for the credit and, if so, assists with preparing the application form.
Some initial eligibility requirements include being actively involved in the daily operation and management of the business, and the employment of five or fewer full-time equivalent (FTE) employees; you can qualify even if you do not currently have employees. Farm and livestock operations may be eligible but must have a net worth of less than $500,000 to qualify.
The credit is based off an up to 20% increase in investment made by the business in any of the following areas: depreciable asset purchases, repairs and maintenance, advertising, legal and professional fees, net leases, employee compensation, or employer-paid health insurance. For example, a business that hires a new employee in 2022 and spends $50,000 on their compensation and employer-paid health insurance could qualify for a $10,000 credit (20% of $50,000). The due date for this year’s application is October 31.
If your business is seeking a long-term relationship with an accounting firm that helps clients take advantage of available federal and state tax credits like the Nebraska Microenterprise Tax Credit, contact the SP Group, P.C. team at (402) 420-7758. Learn more at www.spgrouppc.com.