Take Advantage of Tax-Incentive Programs
One of the best ways to reduce taxes is to take advantage of tax-incentive programs being offered to businesses by many state and local governments. With one hand, states and localities are taking money from businesses in the form of taxes. But with the other, they're often willing to give it back as a part of a tax-incentive or credit program. Therefore, it pays to thoroughly investigate whether your business qualifies for any of these special tax-incentive programs.
This strategy works really well if you're relocating or planning to expand your business, says Joe W. Neff, partner in charge of state tax consulting at PricewaterhouseCoopers in Los Angeles.
John Logan, senior state tax analyst with CCH Inc., a provider of tax and business law information in Riverwoods, Illinois, agrees and adds that "states have been in a contest to see which ones can provide businesses locating within their boundaries with the most attractive incentives."
To find out about similar programs in other states, check out individual states' Web sites.