Blake Christian, CPA, MBT

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Developing a Federal and State Incentive Tax
Practice

• Blake Christian, CPA, MBT
• November 14, 2007

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IntroductionTax Incentives as Part of Holistic
Tax Planning

• Very program / state specific 7,500 distinct
  Zones throughout the U.S.
• Often difficult to locate current address
  databases since managed by local jurisdictions
• Perceived as immaterial or inapplicable by many
  tax advisors
• Overlooked or materially under-reported by 90 of
  taxpayers/ tax advisors
• Material Impact - Hiring credits range from 500
  to 11,800/ yr. per qualified employee.
  Equipment Credits up to 10.

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Tax Incentives as Part of Holistic Tax Planning
(cont.)

• For those that claim the benefits
• Permanent tax benefit
• Reduced effective tax rates
• Refunds in many cases federal 3 years
• Competitive advantage lower cost of labor/ lower
  cost of capital outlays
• Enhanced reputation for your tax department
• Improved value of business and improved R.O.I.
  for equity holders
• Billing flexibility hourly or contingent fee
  basis

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Major Points to Remember

• 28 MSNA offices are in incentive zones (see
  Appendix) therefore, a large of your clients
  will also be in a zone
• The average benefits documented are seldom less
  than 100,000 and can easily exceed 1,000,000
  for larger companies
• HCVT Has documented over 30,000,000 of tax
  credits
• There is a high probability that your clients
  have locations or clients in one or more Zones.
  On average, approximately 1-in-5 locations (20)
  are in a Federal or State Zone
• Wal-Mart, Home Depot, Starbucks, Wells Fargo,
  Warren Buffet and other taxpayers executing best
  practices utilize many of these location-based
  incentive programsproviding them a significant
  operating advantage

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All States Have Some Federal and State Credits
Many Have Both!

• In which States do you practice?

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Sample Projects
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Federal Zones
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Enterprise Zones
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Arizona Enterprise Zones
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CCH Tax Zone Locator (HCVT developed with
National Tax Credit Group, LLC)

• NTCG has developed the only national database of
  location-based federal and state incentive Zones.
  The total number of Zones exceeds over 7,500
  distinct regions and includes
• State Enterprise Zone Programs (39 States) 500
  - 10,500 per employee/ yr.
• Federal Empowerment Zones (41 Nationally) (768
  Census Tracts) 3,000 per employee/ yr. IRS
  Form 8844
• Federal Renewal Community (39 Nationally) (1,114
  Census Tracts) 1,500 per employee/ yr. IRS
  Form 8844
• Federal Indian Tribal Lands (4,476 Nationally)
  4,000 per employee/ yr. IRS Form 8845
• Federal Free Trade Zones (612 Nationally) -
  Deferred Custom Duty Payment

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Sample TZL Output
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Batch Analysis Sample Output
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So What Are You Waiting For?

• Protect your client base and create a lucrative
  niche practice that will distinguish you from
  other firms
• Become a hero! Provide better service by helping
  your clients to claim what they are entitled to
  and minimize their tax liability
• Particularly useful in MA Engagements and
  Business Development efforts
• Acquire and retain more clients and increase your
  rate per hour

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Contact Information
HCVT is a full-service CPA firm that was formed
in 1991 and currently has 23 partners and a total
professional staff of over 240 with 6 offices in
Southern California For questions or additional
information please contact HCVT LLP 100
Oceangate, Long Beach, CA 90802 / (562)
590-9535 Blake Christian at [phone] or
blakec_at_hcvt.com Victor Gonzales at [phone]
or victorg_at_hcvt.com www.hcvt.com
http//hcvt.com/ez.aspx CCH Demo
link http//www.ntcgtax.com/batchAnalysis/servlet
/EZLocator?keyv3c6vgupX5Ssfz2lwuseridmaydemo1
CCH Contact Angela.Darrow_at_wolterskluwer.com
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Appendix A

• MSNA offices in the Zone

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Appendix Files - Batch Analysis
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Appendix Files - Batch Analysis
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Appendix Files - Batch Analysis