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Tax Credits And Incentives—federal and state

Develop your tax credits and incentives strategy

Identifying, understanding, and prioritizing the right tax incentives for your organization at a federal and state level can be a time-consuming and challenging undertaking—but it’s also one that can generate significant benefits.

Engineered by people, powered by technology

Deloitte combines world-class professional services with proprietary technology to identify qualifying business tax credits and incentives that can support your company’s investment, innovation, and environmental, social, and governance (ESG) strategies. Our IncentivesHub technology is an innovative, web-based incentive claims management system that assists our global network of professionals in navigating complex tax landscapes, identifying emerging opportunities, and uncovering potential savings.

Federal and state credits and incentives

Our dedicated credits and incentives team can assist you to identify, implement, and maintain compliance for discretionary incentives. Our technology can help transform complexity into confidence, giving you more transparency into engagements, easier connection to practitioners, and the ability to stay as involved in the process as you desire. Our tax professionals can also help identify and obtain potential tax incentives based on your qualifying activities. With services tailored to your specific needs, you may be able to benefit from:

State and local tax credits and incentives

State and local tax credits and incentives can unlock opportunities during significant organizational growth and change. Fusing our people and technology, Deloitte can help identify the local tax credits and incentives that may help you manage operational costs, improve earnings, enhance your economic value and more. When you work with Deloitte, you may be able to respond to:

  • Property tax abatements/rebates
  • Sales tax exemptions/rebates
  • Employment and hiring credits
  • Tax increment financing
  • Cash grants
  • Permit fee waivers
  • Recruitment incentives
  • Research and development credits
  • Data center incentives
  • Freeport exemptions

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Non-profits: Direct pay can unlock potential cash savings

With direct pay, you could get cash back for your sustainability investments, even if your org doesn’t pay tax.
We know– it sounds too good to be true. Reach out, we can help you navigate this opportunity.

One-page guide on direct pay and refundable tax credits

Podcast on direct pay and transferability l Sustainability credits- Buying and selling explained

Three primary enterprise service delivery goals

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Direct Pay: Planning considerations

  • Will there be sustainability initiatives intended to reduce greenhouse gases?
  • Are you trying to reduce your carbon footprint?
  • Are you planning to:
    • Purchase clean vehicles or charging stations?
    • Produce clean hydrogen?
    • Invest in carbon capture equipment?

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Areas of investment

  • Solar, wind, hydrogen, etc.
  • Electric vehicles
  • Charging stations
  • Carbon capture
  • Renewable energy property
  • Energy efficient technology

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Deloitte services

  • Determine eligibility to claim credit
  • Calculate credit amounts and model benefits to determine best available credit option
  • Assist with direct payment processes and procedures
  • Assist in developing methodology memos to outline product facts, criteria, and traceability to credit amounts (amount produced, timeline for construction)
  • Provide tax opinions/memos to define specific aspects of tax requirements for various credits and incentives

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Why Deloitte?

  • Global reach: Deloitte can help you see the possibilities by identifying potential tax incentive opportunities available to your company worldwide.
  • Technology at the center: Deloitte professionals leverage technology for operational efficiency and to gain a clear vision of relevant global investment opportunities.
  • Industry experience: Deloitte practitioners know and understand your industry, your business language, and your technology.
  • A life cycle view: Each tax incentive is considered in the context of the investment and innovation life cycle to analyze the financial and commercial benefit.
  • Total perspectives: Deloitte's broad range of specialized services is available to help you consider the impact of incentives on your wider tax, financial, and commercial activities so you can further enhance and accelerate potential opportunities.
  • A flexible platform configured by your dedicated engagement team to fit your specific needs.
  • A practical way for Deloitte to gather and analyze tax credit and incentives data and compute eligible spend for incentives programs.
  • Data visualizations and real-time dashboards/heatmaps to support a data-driven approach to engagement management.
  • Incentives tracking to identify, plan, execute, and report across any statutory and discretionary credit and incentive portfolio—allowing tracking of key milestones, tasks, and credits and incentive obligations required to effectively assess, implement, and comply and monetize sustainability incentives.
  • A global incentive library of 5,000+ programs to support a client's pursuit of incentives across a company's domestic and global footprint.
  • An ability for Deloitte to collaborate with all stakeholders—such as finance, operations, engineering, tax, third-party collaborators, etc.—through IncentivesHub.
Business investmentsBusiness activitiesRelevant credit or incentive
Research & development
  • Product and process development or enhancement
  • Software development
  • R&D tax credit
Sustainability initiatives
  • Green manufacturing
  • Energy property expenditures (wind, solar, inverters, battery storage, critical minerals)
  • Energy-efficient technology
  • Emissions reduction
  • Carbon capture
  • Hydrogen production
  • Electric vehicle charging stations
    Manufacturing
    • Advanced energy project credits (section 48C)
    • Advanced manufacturing production credit (section 45X)
    • Advanced manufacturing investment tax credit (CHIPS Act section 48D)
    Transportation & fuel
    • Qualified commercial clean vehicles (section 45W)
    • Alternative refueling property (section 30C)
    • Sections 40A, 6426, 40(b), 45Z, 40B
    Renewable energy
    • Investment tax credit (section 48)—Installation of qualified energy property
    • Production tax credit (section 45)—Installation of qualified electricity-generating property
    • Clean electricity production credit (section 45Y)
    • Clean electricity investment tax credit (section 48E)
    Hydrogen carbon capture
    • Carbon oxide sequestration credit (section 45Q)
    • Clean hydrogen production credit (section 45V)
Real estate and capital investment
  • Business expansion or relocation
  • Equipment expenditures
  • Semiconductor investments
  • Infrastructure improvements
  • Tax equity investment incentive: Exchange of business tax credits/attributes among taxpayers to allow for more efficient use of tax credits/attributes
  • New markets business tax credit: Cash subsidy for qualified capital investment
  • Qualified opportunity zone: Deferral, reduction, or exclusion of capital gain via investment in a qualified opportunity fund
Employment activities
  • Jobs creation or retention
  • Employee training
  • Work opportunity tax credit

Discover more insights on credits and incentives services

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State tax credits and incentives in the CHIPS Act and IRA
Federal initiatives offer significant value at state level
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Contact us

Ready to start a conversation about what tax credits and incentives may be relevant to you? Engaging with us at the very beginning of your new investment opportunity is crucial for enhancing value from credits and incentives services, as starting the process early allows for more strategic decision-making before any commitments are made.

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