Debunking the Myths about Tax Credits

“Tax credits are for big companies.”

Fortunately, tax credits do not work that way. Tax credits are available for all qualified companies, big and small. If your company is in a designated tax credit zone, then it has already met the most important qualification for receiving tax credits.


“It will probably only save me a couple hundred dollars.” 

The total amount of hiring credits is unknown until the tax credit specialist receives all the required documents. But generally speaking, the total amount of hiring credits is determined by the number of full time employees, business location, residence of the employees, and other influential variables.

Comparing between a qualified company who houses 50+ full-time employees with only 10 employees who lives in an opportunity zone/Tier 1 county and a 500+ full-time employees with only 5 employees who lives in an opportunity zone/Tier 1 county, the former company will receive greater tax credits.

Check out how much we saved this company’s income taxes and withholding taxes!


“There’s no such thing as free money from the government.” 

Not so. The majority of the states in America offers some kind of tax credit or rebate program for businesses as an incentive to operate out of those states. These tax incentives remove all or part of the withholding tax or corporate income tax to encourage an increase in local economies.


“It’s going to take so long to receive the credits.” 

Most, if not all, tax credit specialist firms work in a fast-paced environment and thrive on deadlines. While most companies file their taxes calendar-year-end, others file fiscal-year-end. Therefore, most firms will continuously work with you and your CPA to meet your filing date. The majority of tax credit specialist firms will have credits generated for you in 4-6 weeks after all documents are collected.


“My business is in a well-off area. I won’t be qualified for any tax credits.” 

Each state has its own tax incentivized zone. Even if you might think your business is in a well-off area, some states still offer incentives for businesses to operate in those counties. However, well-off counties or areas might have stricter rules and qualifications before a tax credit specialist firm begins processing. Check out the 2017 tax credit zones here for Georgia.


“My CPA is already helping me save money.” 

Tax credit specialist firms are not a CPA firm. They focus specifically on tax credits. Most firms partner with your CPA and payroll department and/or company to help you save even more on your taxes.

Think of it like this: your CPA is like your general practitioner. He/she takes care of your basic health needs. Tax credit specialist firms are similar to surgeons, focusing on very specific tax needs. The general practitioner and the surgeon both work together to make sure that the patient is well and that’s what the tax credit specialist firms and your CPA would do for you.


“Buying something (a service) to save money doesn’t sound right.” 

At TRACS Group, we work on a contingency basis with no up-front fees. We identify your business to see if it qualifies. Then we work with your CPA and the State Department of Revenue to generate tax credits for your business and company’s shareholders to save money on withholding taxes and the shareholders’ taxes. We also “grandfather” your company in, meaning that if the tax credit zone changes, your company and shareholders will still be able to take advantage of the tax credit program.  We only charge for the amount of tax credits that you use versus the amount of tax credits that we actually generate for your company.

For example, if we generated $100,000 in tax credits for your company and you only used $50,000, then we would only charge you a fee of the $50,000.


Cheers to a less taxing tax season, am I right?


Are there some questions that we can answer for you about tax credits? Give us a call or leave us an email so we can help you decide if tax credits are right for you and your business!



For more information on Georgia Tax Credits, TRACS Group is a tax rebate and credit company that helps your CPA and your company reduce your tax liability. We are proud members of the Athens, Clayton, German-American, and Korea Southeast Business of Commerce. Please feel free to contact us at (855) 668-7227.