Finance expert Mike Periu on how to significantly reduce or eliminate your state business taxes.
If your business is located in a state with a high income tax, there are options available to significantly reduce or even eliminate that tax liability. In order to entice businesses to set up or expand operations within their borders, state governments offer income tax credits. Over $10 billion per year in state income tax credits are offered. Many businesses qualify for these credits but don’t generate sufficient state income tax liabilities to use them up. They can typically carry these forward on their state income tax returns into a future period when they might use it. But some businesses need cash today for working capital. These businesses can sell the tax credits to another business that can use it. Buying and selling state-level income tax credits is perfectly legal and an accepted practice. (Note: this is not the case for federal-level income tax credits.) It’s important to make sure that the particular credit you plan to buy or sell can be transferred before engaging in the transaction.
About Mike Periu
Mike is a seasoned executive with experience in small business finance and management. He is the founder of Proximo, LLC a leading provider of corporate, consumer and small business education and training services with an emphasis on finance and technology.
Mike Periu is also a leading national voice for individual empowerment through financial education and entrepreneurship. He has been interviewed over 500 times in national and international media, including NBC, Univision, CNN en español, Telemundo, HITN, TVE, RTE, SBS, MegaTV and others.
Mike writes regularly for American Express OpenForum, Yahoo! Finanzas and is a Huffington Post contributor.
Mike has degrees in Finance and International Business from Georgetown University. He is on the Board of Directors of the Council for Economic Education and was a Fellow at the Kauffman Foundation’s Labs for Enterprise Creation.
