Take advantage of these 8 small business tax breaks this year and beyond.
Tax day is just around the corner – a deadline small business owners dread.
Filing tax returns… Making reconciliations… Seeking every opportunity to avoid unnecessary tax payments…
But it doesn’t have to be quite so stressful. You can ease some of your annual stress by registering your small business for tax breaks. And luckily, Oregon is ranked as one of the best states for small business taxes, according to Business News Daily.
In fact, there are actually many state tax breaks for small businesses. Through Oregon’s many incentives, small business owners can reduce their yearly burden and focus instead on running their businesses.
Tax Benefits for Owning a Small Business in Oregon
We’ve compiled the following small business tax deductions, benefits and incentive programs to help keep more of your business income.
Employee Retention Credit (ER)
The ERC stimulus program is a popular government-backed option for small and mid-sized businesses that retained employees throughout the Covid-19 pandemic. Eligible businesses can receive a grant of up to $26,000 per employee.
Small businesses located within one of Oregon’s 76 Enterprise Zones experience tax abatement for a certain number of years. The state also offers a Construction-in-progress Tax Abatement program for this zone, which exempts commercial facilities from property taxes for up to two years while undergoing construction.
Rural Renewable Energy Development Zone
Local businesses that harness renewable energy sources to generate electricity are eligible for a local property tax abatement for three to five years.
Oregon Investment Advantage (OIA)
This program offers small business owners a 10-year taxable income exemption and can be combined with other abatement programs. Small businesses must get certified and reside in a county currently offering the incentive.
Energy Trust provides Oregon small businesses committed to energy efficiency with rebates and tax credits. The organization offers tailored support to several industries and cash incentives for equipment upgrades.
Strategic Investment Program (SIP)
Small businesses can receive a 15-year tax exemption on parts of large capital investments through the SIP. The program specifically provides the exemption for projects developed by “traded sector” businesses.
Small Business Health Care Tax Credit
Lower the cost of offering health insurance to your employees with the IRS Small Business Health Care Tax Credit. This program offers up to 50 percent of the amount paid toward employees’ premium costs and 35 percent for tax-exempt employers.
Food Processor Property Tax Exemption
Oregon allows a property tax exemption for all food processors certified by the Oregon Department of Agriculture.
This federal tax credit is available to all Oregon small business owners who “hire individuals who face barriers to employment,” such as veterans. Tax credits range from $1,500 to $9,500 per hire.
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