Tax & Accounting Blog

Driving Revenue with UltraTax CS Data Mining, Part 8: Finding clients who may qualify for state-specific tax credits

CS Tax & Asset Management Solutions September 4, 2014


Finding clients who may qualify for state-specific tax credits

Even if your clients are up to speed on all the latest federal tax credits, there are likely some state-specific credits that they’re unaware of. These little-known credits are a great opportunity for you to save your clients money. And with UltraTax CS Data Mining, it’s easy to find clients who may be eligible.

Once you’ve identified the criteria that qualify clients for a given credit, all you need to do is create a custom report that lists the relevant information and a custom search to populate it with the clients who are good candidates for that credit.

If you’ve read my previous UltraTax CS Data Mining blogs, you’re already an expert at custom reports and custom searches. If not, you may want to read a few previous entries, where I provide step-by-step instructions for creating them. The July 8 entry, for example, includes detailed instructions.

Once you’ve mastered custom reports and searches, the next step is to identify the criteria to include for the credit you’ve chosen. I’ve included criteria for a few popular credits below to help you get the hang of it.

If the criteria for a certain credit leaves you stumped, feel free to drop me a note in the comments section below. I’ll do my best to get back to you with the proper criteria.

New York Family Tax Relief Credit

The Family Tax Relief Credit provides a $350 payment to certain middle-income New Yorkers.

Create a custom report that includes:

  • Name and date of birth for dependents (input value)
  • Adjusted gross income from form IT-201, line 33 (calculated amount)
  • New York State liability after credits from Form IT-201/203 (calculated amount)

Create a custom search to find:

  • Individuals who prepared Form IT-201 (form)
  • Individuals with at least one dependent who has a date of birth of 1/1/1996 or later (input value)
  • Individuals with a New York State adjusted gross income between $40,000 and $300,000 (line 33 of Form IT-201) (calculated amount)
  • Individuals who have a New York State liability after credits of zero or greater (calculated amount)

Pennsylvania Keystone Innovation Zone Tax Credit

Companies operating in designated Keystone Innovation Zones and in target industries can qualify for a tax credit of up to 50% of gross revenue or $100,000.  Applications must be submitted on or before September 15.

Create a custom report that includes:

  • Company’s incorporation date (input value)
  • ZIP code where the company operates (input value)
  • The business’ code and/or description (input value)

Create a custom search to find:

  • Companies with a date incorporated of 1/1/2007 or later (input value)
  • Companies with a ZIP code that equals a qualifying ZIP area (input value)

Wisconsin Development Opportunity Zone Tax Credit

The Wisconsin Economic Development Corp. (WEDC) offers tax credits to businesses that operate in a handful of cities and undertake certain investment projects.

Create a custom report that includes:

  • The business’ city of operation (input value)
  • The business code or description (input value)
  • Gross revenue, total tax, and/or BOY/EOY asset totals (calculated amount)

Create a custom search to find:

  • Businesses with a city that equals Beloit, Janesville, or Kenosha (input value)

Obviously, these are only a few of the many state-specific tax credits available. The Thomson Reuters Checkpoint Credits & Incentives Pinpointer provides a powerful search tool for state credits and incentives, and of course you can always check state government websites as well.

Come back on September 16 for my final UltraTax CS Data Mining blog entry, where I’ll show you how to use UltraTax CS Data Mining to send automated reminders to clients who are required to submit estimated tax payments.