Human Capital Incentives
Human Capital Incentives is a term describing the incentive programs relating to your company's job applicants, current employees, training initiatives, increases in personnel headcount, and employee's characteristics. Although CCG captures and administers much more than Human Capital Incentives, this is a core part of our service offering, and a key focus of our clients in the current economic environment.
Work Opportunity Tax Credit
The Work Opportunity Tax Credit (WOTC) has been the cornerstone hiring-related tax credit in the U.S. for approximately 20 years. It is a Federal income tax credit applied against a company's income tax liability. The financial benefit to an employer is up to $9,000 for every qualified new hire—typically representing 15% of most company’s new hires. There are numerous categories upon which a new hire may qualify.
Other Hiring Credits
Hiring Credits are incentives established by the Federal and state governments to promote and reward businesses that create jobs for American workers. All businesses that are "for-profit" in the U.S. are eligible to qualify for these government incentives.
Negotiated Incentives
Incentives are typically categorized into two groups: statutory and discretionary. Federal and state statutory incentives are law and are available to all businesses that meet the program’s requirements. Discretionary incentives are Federal, state, and local incentive programs that can be customized to attract or retain certain industry groups, or lure an out-of-state business to a specific locality. The programs typically offer credits, grants, abatements, and other incentives.
Location Based Incentives
There are numerous federal and state geographic areas that have been designated by the government as empowerment zones, renewal communities, enterprise zones, and targeted revitalization areas. Incentives are available for companies with locations residing in these areas. These lucrative incentives range from hiring tax credits, investment tax credits, sales and use tax credits, property tax abatements, training grants and/or credits, tax exemptions, utility discounts, cash inducements, and other government sponsored incentive programs.
California Enterprise Zone
The state of California created the California Enterprise Zone program in 1984 to encourage businesses operating in targeted geographic areas to create employment opportunities, purchase certain types of assets, motivate lenders to make loans to businesses in specific economic areas, and help businesses stay in these areas by easing state tax burdens. Currently there are 42 very large Enterprise Zones ("EZ's") across California.
Compliance & Administration
Companies typically use attorneys, real estate professionals or in-house resources to negotiate an incentives package—dedicating valuable time, capital and resources. However, when the glamorous stages are complete—such as a ground-breaking ceremony including pictures with the mayor, city manager and governor—the heavy lifting just begins.
Small & Mid-Size Businesses
Based on research performed by a number of well-respected economists, businesses that employ 100 or fewer employees will be responsible for creating 68% of the jobs in the U.S. going forward. These companies will be a key focus for any new stimulus packages.
Business Process Outsourcing
CCG has developed a BPO model that—unlike other incentives consulting firms— supports all incentives functions. To achieve optimal results, companies leverage CCG's BPO platform to maximize government incentives. Our platform provides clients the ability to focus on core-company initiatives such as increasing market share, improving profitability, attracting and retaining a quality workforce, and creating operational efficiencies.
Tax Controversy
Our Audit Defense Services Team ensures our clients are protected for credits and incentives claimed by our firm. We provide both short-term and long-term strategies so the incentives secured are properly documented and maintained—now and in the future. This type of initiative provides our clients peace of mind and assurance they are being well represented with their incentives strategy.
