Tax credits remain one of the most overlooked ways for businesses to keep cash and improve their bottom line. Most companies leave valuable tax credits unclaimed. This happens not because they make mistakes, but because they don't know better.

Small and mid-sized businesses often miss substantial federal, state, and local tax incentives. These include R&D Tax Credits, Work Opportunity Tax Credits, Property Tax Adjustments, and Payroll Tax Reductions via Employee Benefits. Lost profits and competitive disadvantage follow when businesses miss these chances in today's challenging environment.

Capturing these hidden tax credits makes a real difference. Our clients' bottom-line improves measurably after they implement proper expense and tax credit management strategies - over 90% see positive results. Businesses can save around $1,120 per employee with SIMERP & Section 125 benefits. They can also qualify for federal credits like the Work Opportunity Tax Credit when they hire veterans, long-term unemployed, and other targeted groups.

Expensage helps businesses realize the potential of these valuable employer tax credits. We reduce tax liability and help recover funds from eligible class action settlements through expert claims consulting. This piece reveals the eight most commonly missed tax credits. You'll learn why they go unclaimed and how to capture these savings for your business. Check expensage.com today to find out your company's potential savings.

The real cost of missed tax credits

Small and medium-sized businesses (SMBs) leave billions in tax savings unclaimed each year. This isn't just a missed chance - it's money that could make your company stronger financially. Business owners often realize these missed credits too late.

Why most SMBs overlook tax incentives

The numbers tell a surprising story: all but one of these large companies claim the Research & Development Tax Credit. Yet less than 30% of eligible small businesses do the same. This gap goes beyond R&D credits. Your chances of knowing about tax incentives drop with your business size. Just 16% of employers with 1-4 employees know about startup tax credits, while 50% of businesses with 50-100 employees do.

Here's what creates this knowledge gap:

1. Limited awareness and expertise - Many business owners haven't heard about these credits. A remarkable 72% of small businesses without retirement plans didn't know about tax credits that could pay for their startup costs.

2. Complex documentation requirements - Small teams often feel overwhelmed by the paperwork needed to track, document, and file tax credits. One study shows that "Small firms bore a higher 'time burden' during compliance audits".

3. Tax literacy challenges - About 37% of small businesses feel anxious and confused about tax filing. Even more worrying, one in four business owners didn't know how to file taxes.

4. Overreliance on generalist CPAs - Many accountants focus on keeping you compliant rather than planning your taxes strategically. Your tax expert might excel at compliance but miss chances to save you money.

The hidden effect on your bottom line

Missing tax incentives costs you real money. This goes beyond paying extra taxes - you miss chances to grow your business and stay competitive.

Nine out of ten small businesses face a huge tax increase when the 20% Small Business Tax Deduction ends in 2025, without Congressional action. Many tax incentive programs don't work well for small businesses. The Maryland capital investment program needs at least $500,000 in project costs, which leaves out many startups and small businesses.

These missed chances lead to:

• Reduced capital for growth initiatives - You could use tax savings to upgrade technology, hire staff, or fund strategic growth
• Competitive disadvantage - Your competitors gain an edge when they claim credits you miss
• Long-term financial effect - Missing credits year after year adds up quickly

We've watched proper tax credit management change SMB finances at Expensage. Our targeted approach helps you find credits you qualify for but might miss. We also handle the complex paperwork that often stops small businesses from claiming these benefits.

Your tax savings shouldn't slip away. Visit expensage.com to learn how our AI-powered expense and tax credit discovery platform helps your business get every dollar you deserve - without disrupting your operations.

8 hidden tax credits your company might be missing

Tax credits can improve your company's financial position without changing how you operate. Many businesses miss these chances because they don't know what to look for. Here's a practical overview of eight powerful tax credits your company should use.

1. Work Opportunity Tax Credit (WOTC)

This federal incentive rewards businesses that hire people from targeted groups who face employment barriers. The credit equals 40% of up to $6,000 in wages for employees who work at least 400 hours, which means a maximum credit of $2,400 per eligible hire. Qualified veterans can help employers claim up to $24,000 in wages. Employers must complete Form 8850 within 28 days after the employee starts.

2. R&D Tax Credit

You can apply 6-8% of your yearly qualifying R&D expenses directly against federal income tax liability. Activities like developing processes, patents, formulas, techniques, or software qualify. Smaller businesses can claim up to $500,000 yearly against payroll taxes. This makes the credit valuable even if you don't have substantial income tax liability.

3. Property Tax Adjustments

Property tax appeals can save you money through assessment reductions, especially when property values change or assessments have errors.

4. Employee Retention Credit (ERC)

This pandemic-era tax credit rewards businesses that kept their staff employed. Businesses could claim the credit on wages paid until September 30, 2021 (or December 31, 2021 for certain businesses). Qualifying employers include those affected by government orders or who saw required drops in gross receipts.

5. Section 125 and SIMERP Benefits

Section 125 plans let employees pay qualified expenses pre-tax. This reduces their taxable income and your company's Social Security, federal income, and unemployment tax obligations. SIMERP can cut payroll taxes by up to $639 per employee yearly while funding extra health benefits.

6. Self-Employed Sick and Family Leave Credit

Self-employed people can claim tax credits for days they couldn't work due to COVID-related reasons. Credits cover up to 10 days of sick leave (maximum $511/day) and up to 50 days of family leave (maximum $200/day). These credits only apply to tax years 2020 and 2021.

7. 179D and 45L Energy Efficiency Credits

The Inflation Reduction Act has expanded the Section 179D deduction for energy-efficient commercial buildings. The deduction ranges from $0.54 to $1.07 per square foot starting in 2023. It increases to $2.68-$5.36 per square foot when meeting widespread wage requirements. Building owners and designers of energy-efficient buildings for tax-exempt entities can claim this.

8. Class Action Claim Entitlements

Your business might qualify for settlement funds from class action lawsuits. Many businesses never file claims. These settlements often don't need proof of purchase and can lead to substantial recoveries.

Want to find which tax credits your business is missing? Contact Expensage to schedule your free assessment appointment. We help identify qualifying credits and handle the complex documentation that often stops businesses from claiming these benefits.

Our clients see better cash flow and profitability without disrupting their operations. Expensage helps turn hidden tax chances into real financial results for forward-thinking SMBs.

Why these credits go unclaimed

Businesses leave money on the table when they don't claim tax incentives they qualify for. All but one of these companies miss out on potential savings. The numbers tell the story - less than three in ten eligible small businesses claim the R&D Tax Credit. Companies miss these opportunities because of systemic problems in their tax planning approach.

Lack of awareness among finance teams

Companies miss tax credit opportunities despite having capable internal finance teams. Your tax staff might excel at their core duties but miss potential savings. Tax experts point out that "Having a whip-smart internal finance team doesn't mean your business is immune to this problem". These professionals "limited in number and likely stretched for time" can't research beyond standard deductions.

Complex documentation and compliance

Tax credit claims need proper documentation with strict deadlines. To cite an instance, businesses must complete specific Work Opportunity Tax Credit forms within 28 days after hiring. Many companies face issues with "insufficient records" that lead to "disqualification during audits". R&D claims need "thorough and contemporaneous documentation" to pass IRS review.

Don't let complex documentation or lack of specialized knowledge cost you money. Contact Expensage to schedule your no-cost assessment appointment and start capturing these credits.

Overreliance on generalist CPAs

Most businesses rely on general-practice CPAs who don't specialize in industry-specific tax incentives. These "jack-of-all-trades" accountants "know a little about everything" but "rarely tuck deep into a specific area of tax law". The knowledge gap costs money—generalist CPAs often miss valuable deductions and credits, "leaving significant money on the table".

No internal tax strategy resources

Small and mid-sized businesses lack dedicated tax strategy teams. Unlike Fortune 500 companies, SMBs can't afford resources for a "reliable, transparent and effectively communicated tax strategy". Companies miss tax incentives because "many businesses fail to take full advantage of these tax-saving opportunities due to a lack of awareness, lean resources, or uncertainty about the qualification process".

Expensage bridges this knowledge gap by offering specialized expertise in tax credit identification and documentation. We help your business capture every dollar it deserves.

How Fortune 500 companies capture every dollar

Big corporations are experts at reducing their tax burden through complex strategies that small businesses can't copy on their own. These companies have become skilled at capturing tax credits with methods that save them substantial money.

Dedicated tax and procurement teams

Large corporations hire "legions of attorneys and accountants to execute advanced tax strategies". These teams go beyond basic compliance. They methodically study "four core sources of tax rules: The Internal Revenue Code, IRS Regulations, written guidance, and case rulings". Their tax departments have "entire teams exploring case scenarios of variables, actual and hypothetical". Small armies work to maximize cash and defer tax liabilities.

Automated systems for tracking and filing

Big companies put significant money into technology that spots tax-saving chances automatically. They use "automated systems for identifying qualifying R&D expenses" and create "real-time data sync between payroll and compliance tools". These systems generate "instant credit estimates" and "audit-ready reports" without manual work. This tech advantage helps Fortune 500 companies claim credits that smaller businesses often miss.

Specialized consultants and legal support

Large corporations increase their capabilities with outside expertise beyond internal resources. Studies show "20% of Fortune 500 companies are Grant Thornton tax clients". Companies "outsource or co-source" specific tax functions to "fill knowledge gaps", especially when they need location-specific incentives for expanding operations.

Expensage built its platform to give SMBs the same tax benefits as corporate giants. Our AI system finds overlooked credits while specialists handle documentation that often stops smaller businesses. Visit expensage.com to find how we can help your company apply Fortune 500-level tax strategies without needing Fortune 500 resources.

How Expensage helps SMBs unlock these savings

Expensage makes use of advanced technology to bring Fortune 500-level tax savings strategies to small and mid-sized businesses without the need for massive internal resources. We bridge the gap between tax opportunities and actual savings.

AI-powered expense and tax credit discovery

The Expensage platform uses advanced AI to analyze your business activities and spot applicable tax credits. As with leading platforms that "pull only the needle you need out of the haystack," our system provides "expert-validated data and real-time targeted updates". This technology removes the need to manually search outdated databases or multiple government sites—tasks that waste time and often miss vital information.

End-to-end documentation and filing support

Our team takes care of the "meticulous analysis and documentation necessary to prove each claim". This complete approach will give businesses the ability to "confidently claim credits without undue fear of an audit". The IRS has stricter documentation requirements for credits like R&D, which makes our expert support crucial in handling complex compliance rules.

No disruption to vendors or operations

Expensage combines smoothly with your existing systems, unlike traditional consulting services. Our "robust API architecture" enables "seamless integration and automation" with your current financial processes. Your team needs to put in minimal effort.

Contingency-based pricing: no savings, no fee

A simple principle guides our work: "if you don't get a tax credit, we don't earn our fee". Your success determines our success, which removes financial risk while maximizing potential returns. Tax experts suggest that "taxpayers should carefully review the contingent nature of fees". This is why we keep our pricing model fully transparent.

Real results from real clients

Our clients save substantial amounts that boost their bottom line. Like companies that "secured R&D tax credits of $300,000", Expensage clients put these funds back into their businesses to propel development and welcome breakthroughs.

Schedule your free assessment appointment with Expensage today. Let us show you how much your business could save.

Conclusion

---

Capture every tax dollar you deserve

Tax credits are one of the best ways to boost business profits, yet companies rarely use them fully. We've seen how small and mid-sized businesses miss out on major savings. This happens not because of carelessness, but because they don't know about these opportunities or struggle with paperwork.

Big companies like Fortune 500s are great at getting these credits. They have dedicated teams and systems just for this purpose. Your company can get the same results without needing huge resources. Expensage helps bridge this gap by giving you enterprise-level tax credit tools that work perfectly for SMBs.

These benefits go way beyond just following tax rules. Every dollar you get back through tax credits can help grow your business, make you more competitive, or build a stronger financial foundation. These savings add up year after year and make a real difference to your bottom line.

Our AI platform spots eligible credits while our experts take care of the complex paperwork that stops most businesses from claiming these benefits. You get the maximum savings with minimal disruption to your daily work. Don't miss out on money that's rightfully yours. Contact Expensage today to set up your free assessment and start getting the tax credits your business deserves.

Successful companies often stand out because they manage their money well. While tax credits alone won't change everything, they definitely give you the resources needed for strategic plans that lead to steady growth. Remember, this isn't just about tax savings – it's about getting back money you've already earned.

Ready to close the gap with the Fortune 500? Contact Expensage now and start claiming the benefits you deserve!