Disaster Zone Incentives
Help when disaster hits.
"TCC does not miss a beat. They found a huge missed opportunity, twice!" - VP, Tax, F500 Manufacturing
Knowing your Options
The tax credits for businesses affected by hurricanes and wildfires and other disasters can be material, depending on a number of quantitative and qualitative factors.
Beyond the Legislation
The Disaster Tax Relief and Airport and Airway Extension Act of 2017 established the basic parameters for claiming the credit. According to HR 3823, qualifying businesses are those in Hurricane Disaster Areas that continued to pay employees during a period of inoperability. The definition of inoperability and instructions on how to measure the physical and economic impact of the storms is not clearly laid out by the statute. TCC can assist affected companies in getting clarity.
Our first step with clients is to collaborate on choosing the appropriate metric for measuring operability. We look at operation levels heading into, during and coming out of the disaster as compared to when significant operations resumed. The key is to identify a metric that's measurable and supportable with data.
Possible metrics for measuring operability include (compared to pre-disaster levels):
• Sales volume
• Production output
• Total workforce hours or number of who worked
• Physical damage to building
• Inventory levels
When pulling in payroll to generate this credit, TCC always prioritizes flexibility. Our technology was built with agility in mind, because it’s just not always practical for a client to provide data according to our ideal specifications. In finding a way to yes, we identify alternatives that avoid burdening our client.
On the heels of a natural disaster, there are more questions than answers. TCC delivers the clarity companies are looking for. Our guidance is informed by our active role in the state and federal legislative efforts relating to tax incentives and by our 20+ years of experience.