Three tax credits small business owners should not miss out on

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The last few years have drained small businesses of resources, so it's more important than ever for business owners to prepare year around in order to get the most out of their tax returns.  The next quarterly filing deadline is June 15.  Business owners should keep in mind three tax credits that qualifying businesses can file for to get a better return.

1. Research and Development Credit.  The federal government wants to reward businesses that look for ways to enhance efficiency.  Businesses who spend resources to research and re-organize the company departments in order to streamline systems and improve production can file for this credit.
2. Domestic Activities Deduction.  Businesses that manufacture a product within the United States, as well as businesses in the U.S. real estate industry, can file for this deduction.  This deduction was created in a government attempt to promote domestic production in order to stimulate the economy.
3. Cost Segregation Studies.  This credit is for businesses that own their own buildings and use them for production and manufacturing.  A cost segregation study can accelerate the depreciation deduction on the building.  A large portion of the cost of a building used for manufacturing is considered to be a separate cost than the actual structure's cost.  These costs could be included with machinery and equipment used for production and can be depreciated faster, improving cash flow.

Another credit small businesses should keep an eye out for is part of the new jobs bill - if it passes.  The pending jobs bill says that companies who hire new employees will be exempt from the 6.2 percent Social Security payroll tax through December.  They will also receive an additional $1,000 credit if the new employee stays in the job for a full year.

Don't wait until the last minute to start preparing for your quarterly filing dates.  Prepare your documents and keep tax claims in mind year around, and you will get the most out of your returns.  The quarterly filing dates for 2010 are: March 15, June 15, Sept. 15 and Dec. 15.