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Tag: tax credit

  • Healey taps $250M to offset rising health insurance premiums

    BOSTON — The Healey administration is pumping an additional $250 million into the state-subsidized health care system to help offset the impact of now expired federal tax credits, which have driven up premiums for many people insured through the federal health care exchange.

    On Thursday, Gov. Maura Healey and other state officials said they are moving ahead with plans to increase spending on the ConnectorCare program by $250 million, for a total of $600 million this fiscal year.

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    By Christian M. Wade | Statehouse Reporter

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  • State provides tax credits to theater programs

    BOSTON — The Healey administration is doling out $7 million to community theaters under a new tax credit program to help the businesses offset their operating costs, attract more talent and expand offerings.

    The Live Theater Tax Credit Program, which is jointly administered by the state offices of Travel and Tourism and Business Development, announced last week that it has awarded funding for 28 live-stage musical theater, dance or theatrical productions across the state.

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    By Christian M. Wade | Statehouse Reporter

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  • Senate rejects extension of health care subsidies as costs are set to rise for millions of Americans

    The Senate on Thursday rejected legislation to extend Affordable Care Act tax credits, essentially guaranteeing that millions of Americans will see a steep rise in costs at the beginning of the year.Senators rejected a Democratic bill to extend the subsidies for three years and a Republican alternative that would have created new health savings accounts — an unceremonious end to a monthslong effort by Democrats to prevent the COVID-19-era subsidies from expiring on Jan. 1.Ahead of the votes, Senate Democratic Leader Chuck Schumer of New York warned Republicans that if they did not vote to extend the tax credits, “there won’t be another chance to act,” before premiums rise for many people who buy insurance off the ACA marketplaces.”Let’s avert a disaster,” Schumer said. “The American people are watching.”Republicans have argued that Affordable Care Act plans are too expensive and need to be overhauled. The health savings accounts in the GOP bill would give money directly to consumers instead of to insurance companies, an idea that has been echoed by President Donald Trump. But Democrats immediately rejected the plan, saying that the accounts wouldn’t be enough to cover costs for most consumers.Some Republicans have pushed their colleagues to extend the credits, including Sen. Thom Tillis of North Carolina, who said they should vote for a short-term extension so they can find agreement on the issue next year. “It’s too complicated and too difficult to get done in the limited time that we have left,” Tillis said Wednesday.But despite the bipartisan desire to continue the credits, Republicans and Democrats have never engaged in meaningful or high-level negotiations on a solution, even after a small group of centrist Democrats struck a deal with Republicans last month to end the 43-day government shutdown in exchange for a vote on extending the ACA subsidies. Most Democratic lawmakers opposed the move as many Republicans made clear that they wanted the tax credits to expire.The deal raised hopes for bipartisan compromise on health care. But that quickly faded with a lack of any real bipartisan talks.The dueling Senate votes are the latest political messaging exercise in a Congress that has operated almost entirely on partisan terms, as Republicans pushed through a massive tax and spending cuts bill this summer using budget maneuvers that eliminated the need for Democratic votes. They also tweaked Senate rules to push past a Democratic blockade of all of Trump’s nominees. An intractable issueThe votes were also the latest failed salvo in the debate over the Affordable Care Act, President Barack Obama’s signature law that Democrats passed along party lines in 2010 to expand access to insurance coverage.Republicans have tried unsuccessfully since then to repeal or overhaul the law, arguing that health care is still too expensive. But they have struggled to find an alternative. In the meantime, Democrats have made the policy a central political issue in several elections, betting that the millions of people who buy health care on the government marketplaces want to keep their coverage.”When people’s monthly payments spike next year, they’ll know it was Republicans that made it happen,” Schumer said in November, while making clear that Democrats would not seek compromise.Even if they view it as a political win, the failed votes are a loss for Democrats who demanded an extension of the benefits as they forced a government shutdown for six weeks in October and November — and for the millions of people facing premium increases on Jan. 1.Maine Sen. Angus King, an independent who caucuses with Democrats, said the group tried to negotiate with Republicans after the shutdown ended. But, he said, the talks became unproductive when Republicans demanded language adding new limits for abortion coverage that were a “red line” for Democrats. He said Republicans were going to “own these increases.”A plethora of plans, but little agreementRepublicans have used the looming expiration of the subsidies to renew their longstanding criticisms of the ACA, also called Obamacare, and to try, once more, to agree on what should be done.Thune announced earlier this week that the GOP conference had decided to vote on the bill led by Louisiana Sen. Bill Cassidy, the chairman of the Senate Health, Labor, Education and Pensions Committee, and Idaho Sen. Mike Crapo, the chairman of the Senate Finance Committee, even as several Republican senators proposed alternate ideas.In the House, Speaker Mike Johnson, R-La., has promised a vote next week. Republicans weighed different options in a conference meeting on Wednesday, with no apparent consensus.Republican moderates in the House who could have competitive reelection bids next year are pushing Johnson to find a way to extend the subsidies. But more conservative members want to see the law overhauled.Rep. Kevin Kiley, R-Calif., has pushed for a temporary extension, which he said could be an opening to take further steps on health care.If they fail to act and health care costs go up, the approval rating for Congress “will get even lower,” Kiley said.___Associated Press writers Kevin Freking and Joey Cappelletti contributed to this report.

    WASHINGTON —

    The Senate on Thursday rejected legislation to extend Affordable Care Act tax credits, essentially guaranteeing that millions of Americans will see a steep rise in costs at the beginning of the year.

    Senators rejected a Democratic bill to extend the subsidies for three years and a Republican alternative that would have created new health savings accounts — an unceremonious end to a monthslong effort by Democrats to prevent the COVID-19-era subsidies from expiring on Jan. 1.

    Ahead of the votes, Senate Democratic Leader Chuck Schumer of New York warned Republicans that if they did not vote to extend the tax credits, “there won’t be another chance to act,” before premiums rise for many people who buy insurance off the ACA marketplaces.

    “Let’s avert a disaster,” Schumer said. “The American people are watching.”

    Republicans have argued that Affordable Care Act plans are too expensive and need to be overhauled. The health savings accounts in the GOP bill would give money directly to consumers instead of to insurance companies, an idea that has been echoed by President Donald Trump. But Democrats immediately rejected the plan, saying that the accounts wouldn’t be enough to cover costs for most consumers.

    Some Republicans have pushed their colleagues to extend the credits, including Sen. Thom Tillis of North Carolina, who said they should vote for a short-term extension so they can find agreement on the issue next year. “It’s too complicated and too difficult to get done in the limited time that we have left,” Tillis said Wednesday.

    But despite the bipartisan desire to continue the credits, Republicans and Democrats have never engaged in meaningful or high-level negotiations on a solution, even after a small group of centrist Democrats struck a deal with Republicans last month to end the 43-day government shutdown in exchange for a vote on extending the ACA subsidies. Most Democratic lawmakers opposed the move as many Republicans made clear that they wanted the tax credits to expire.

    The deal raised hopes for bipartisan compromise on health care. But that quickly faded with a lack of any real bipartisan talks.

    The dueling Senate votes are the latest political messaging exercise in a Congress that has operated almost entirely on partisan terms, as Republicans pushed through a massive tax and spending cuts bill this summer using budget maneuvers that eliminated the need for Democratic votes. They also tweaked Senate rules to push past a Democratic blockade of all of Trump’s nominees.

    An intractable issue

    The votes were also the latest failed salvo in the debate over the Affordable Care Act, President Barack Obama’s signature law that Democrats passed along party lines in 2010 to expand access to insurance coverage.

    Republicans have tried unsuccessfully since then to repeal or overhaul the law, arguing that health care is still too expensive. But they have struggled to find an alternative. In the meantime, Democrats have made the policy a central political issue in several elections, betting that the millions of people who buy health care on the government marketplaces want to keep their coverage.

    “When people’s monthly payments spike next year, they’ll know it was Republicans that made it happen,” Schumer said in November, while making clear that Democrats would not seek compromise.

    Even if they view it as a political win, the failed votes are a loss for Democrats who demanded an extension of the benefits as they forced a government shutdown for six weeks in October and November — and for the millions of people facing premium increases on Jan. 1.

    Maine Sen. Angus King, an independent who caucuses with Democrats, said the group tried to negotiate with Republicans after the shutdown ended. But, he said, the talks became unproductive when Republicans demanded language adding new limits for abortion coverage that were a “red line” for Democrats. He said Republicans were going to “own these increases.”

    A plethora of plans, but little agreement

    Republicans have used the looming expiration of the subsidies to renew their longstanding criticisms of the ACA, also called Obamacare, and to try, once more, to agree on what should be done.

    Thune announced earlier this week that the GOP conference had decided to vote on the bill led by Louisiana Sen. Bill Cassidy, the chairman of the Senate Health, Labor, Education and Pensions Committee, and Idaho Sen. Mike Crapo, the chairman of the Senate Finance Committee, even as several Republican senators proposed alternate ideas.

    In the House, Speaker Mike Johnson, R-La., has promised a vote next week. Republicans weighed different options in a conference meeting on Wednesday, with no apparent consensus.

    Republican moderates in the House who could have competitive reelection bids next year are pushing Johnson to find a way to extend the subsidies. But more conservative members want to see the law overhauled.

    Rep. Kevin Kiley, R-Calif., has pushed for a temporary extension, which he said could be an opening to take further steps on health care.

    If they fail to act and health care costs go up, the approval rating for Congress “will get even lower,” Kiley said.

    ___

    Associated Press writers Kevin Freking and Joey Cappelletti contributed to this report.

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  • Making the most of the pension tax credit – MoneySense

    Having said that, this tax credit is not a big deal for most people, and in some cases, you will be better off not converting an RRSP or LIRA to a RRIF or LIF to qualify for the credit. 

    In 2025, the maximum federal tax savings is $290 (for my calculations, read on). There is a little more in savings when you apply the provincial credit, which varies by province. In Ontario, the additional tax saving is $89. That means the total tax savings for everyone in Ontario is $379, assuming they are paying at least $379 in tax. If you can’t use the full credit, you can transfer what you can’t use to your spouse.

    Mind the new tax rate

    As a reader, Sylvain, you may have read that the maximum federal tax savings is $300 and not the $290 stated above. That was true in previous years, but the lowest federal tax rate was reduced this year from 15% to 14%. The rate didn’t come into effect until the end of June, or halfway through the year. Therefore, for 2025 the lowest federal tax rate and pension tax credit is 14.5%. Next year they will both be 14%. 

    The other thing to keep in mind is that claiming the $2,000 pension tax credit is not a way to get $2,000 out of your RRIF/LIF tax-free, something I often hear. Well, okay, it almost is if you are in the lowest tax bracket.  

    Doing the math around the pension tax credit

    Think about the way the tax credit works. For the federal $2,000 tax credit, a rate of 14.5% is applied and the tax savings is $2,000 x 14.5% = $290. A rate of 5.05% is applied to the $1,762 Ontario credit for a tax savings of $1,762 x 5.05% = $89. The two combined come to a tax savings of $379.

    Now think about what happens when you draw $2,000 from a RRIF or LIF. If you are in the lowest tax bracket in Ontario, with a marginal tax rate of 19.55% (14.5% federal + 5.05% provincial), you will pay $2,000 x 19.55% = $391 in tax. When you apply the pension tax credit savings of $379, you end up paying only $12 in tax on the $2,000 withdrawal. If the Ontario pension tax credit was $2,000 rather than $1,762 then it would have been a wash with no tax owing.

    The story is different for a person in the highest tax bracket with a marginal tax rate of 53.53%. A $2,000 RRIF or LIF withdrawal will result in $1,070 in tax before applying the credit, and $681 in tax after the pension tax savings of $379. A person with an income of about $100,000 will pay about $240 in tax after the credit is applied.   

    This leads to the next question for the person who is only drawing the $2,000 to get the pension tax credit. Does it make sense to draw the money and reinvest the lesser after-tax amount, or would it be better to leave the full $2,000 in the RRIF or LIF to grow?  This becomes a planning question. What are your spending and gifting plans?

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    What the pension tax credit is good for

    Have I pelted you with enough math, Sylvain? You are right to think about ways to minimize the tax you owe and there are times when you can claim the pension tax credit before the year you turn 65.  

    The most familiar way you can claim the pension tax credit before age 65 is when you are receiving income from life annuities from superannuation or employer pension plans. You can also claim the credit if you are under age 65 and are receiving pension payments as the result of the death of a spouse who was eligible for the pension tax credit. In other words, if your spouse is over age 65 and drawing from a RRIF and then dies, you can claim the pension tax credit on that continued income even if you are not yet 65.

    Another advantage of the pension tax credit comes with the ability to split pension income. If you have a defined-benefit pension plan you can split your pension income with your spouse before age 65. In this case both of you can claim the pension tax credit, even if you are both under 65. The same is true with RRIF or LIF income after age 65, assuming you are both 65 or older. Instead of claiming a $2,000 pension tax credit, the two of you can each claim the $2,000 credit. Two credits for one pension!

    Thanks for your question, Sylvain. Some people automatically convert RRSPs or LIRAs to RRIFs or LIFs to qualify for the pension tax credit without really thinking about it.  

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    About Allan Norman, MSc, CFP, CIM


    About Allan Norman, MSc, CFP, CIM

    With over 30 years as a financial planner, Allan is an associate portfolio manager at Aligned Capital Partners Inc., where he helps Canadians maintain their lifestyles, without fear of running out of money.

    Allan Norman, MSc, CFP, CIM

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  • What is the CRA’s Voluntary Disclosures Program? – MoneySense

    Tax owing still applies but “to be fair to all, the CRA grants a higher level of relief to those who are correcting an error before being contacted than those who are correcting errors after being prompted by communications from the CRA or any other authority of administration.”

    How to quality for the VDP

    There are five primary conditions for the VDP. The disclosure must:

    1. Be voluntary
    2. Include information that relates to a tax year/reporting period that is at least one year/reporting period past the due date
    3. Involve the application of a penalty or interest
    4. Include all known errors or omissions
    5. Include a payment or a request for a payment arrangement

    Recent changes to the VDP

    New guidelines began on October 1, 2025 that impact disclosures related to income tax, sales tax, withholding tax, excise duties, and several other taxes. 

    The application form has been simplified. The four page Form RC199, Voluntary Disclosures Program (VDP) Application can be completed by a taxpayer or their authorized representative. It contains a brief description of the facts relating to the omission or error. 

    The filer must also address the payment of any tax owing, if applicable, or request a payment arrangement to be discussed with a CRA collections officer. 

    Eligibility has also been expanded; if a CRA communication about a potential non-compliance issue prompts the disclosure, it may still be accepted. This differs from past practice. As a result, a CRA education letter about ineligible deductions or unreported income may not prevent a taxpayer from benefitting from the VDP.

    What are the relief provisions?

    There are two tiers of relief that can apply to taxpayers submitting a VDP application:

    1. General relief. This is meant for those who come forward voluntarily without a nudge from CRA. All of the penalties can be waived by CRA, and 75% of the interest on the balance owing. 
    2. Partial relief. An application that is prompted by CRA can still benefit from a full waiver of penalties. However, only 25% of the resulting interest is waived if a CRA communication is what leads to the VDP application. 

    What to do if you have made a tax filing mistake

    If you have unreported income, overstated deductions, or overlooked elections, among other tax filing errors, you should seek to rectify those mistakes as soon as you can. 

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    An unprompted VDP application can be less painful from an interest perspective and help you sleep better at night if you are aware of an oversight. Although you can file a VDP application on your own, if you do your own taxes, consider getting professional input for a situation like this.

    Leave your question for Jason Heath

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    About Jason Heath, CFP


    About Jason Heath, CFP

    Jason Heath is a fee-only, advice-only Certified Financial Planner (CFP) at Objective Financial Partners Inc. in Toronto. He does not sell any financial products whatsoever.

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  • President Trump urges Republicans to reopen government as shutdown marks longest in US history

    The government shutdown has reached its 36th day, the longest in U.S. history, as President Donald Trump pressures Republicans to end the Senate filibuster in order to reopen the government.”It’s time for Republicans to do what they have to do, and that’s terminate the filibuster. It’s the only way you can do it,” Trump told senators Wednesday at the White House.The filibuster is a Senate rule that requires 60 votes to advance most legislation. Ending the filibuster would allow Republicans to pass a bill with a simple majority, but several Republicans warn that when Democrats are in power, they’d be able to do the same thing. Senate Majority Leader John Thune said after breakfast at the White House, “It’s just not happening.”The president also said the shutdown was a “big factor, negative” in Tuesday’s election results.”Countless public servants are now not being paid and the air traffic control system is under increasing strain. We must get the government back open soon and really immediately,” Trump said.The shutdown is hitting home for many Americans, with lines stretching at food banks across the country as SNAP benefits are delayed and reduced for more than 40 million Americans. After-school programs that depend on federal dollars are closing. The Transportation Secretary said, starting Friday, there will be a 10% reduction in flights at 40 airports across the country.Republicans have pushed to reopen the government with a short-term spending bill. Democrats have rejected those bills, arguing that Republicans are leaving out a key provision: restoring expiring Affordable Care Act subsidies that help millions of Americans lower their health-insurance costs. Democrats say passing a short-term bill without those subsidies would leave families facing sudden premium spikes.”The election results ought to send a much needed bolt of lightning to Donald Trump that he should meet with us to end this crisis,” said Senate Democratic leader Chuck Schumer of New York. “The American people have spoken last night. End the shutdown, end the healthcare crisis, sit down and talk with us.”Republicans have said they’re willing to negotiate ACA subsidies, but only after the shutdown is over.See more government shutdown coverage from the Washington News Bureau:

    WASHINGTON —

    The government shutdown has reached its 36th day, the longest in U.S. history, as President Donald Trump pressures Republicans to end the Senate filibuster in order to reopen the government.

    “It’s time for Republicans to do what they have to do, and that’s terminate the filibuster. It’s the only way you can do it,” Trump told senators Wednesday at the White House.

    The filibuster is a Senate rule that requires 60 votes to advance most legislation. Ending the filibuster would allow Republicans to pass a bill with a simple majority, but several Republicans warn that when Democrats are in power, they’d be able to do the same thing.

    Senate Majority Leader John Thune said after breakfast at the White House, “It’s just not happening.”

    The president also said the shutdown was a “big factor, negative” in Tuesday’s election results.

    “Countless public servants are now not being paid and the air traffic control system is under increasing strain. We must get the government back open soon and really immediately,” Trump said.

    The shutdown is hitting home for many Americans, with lines stretching at food banks across the country as SNAP benefits are delayed and reduced for more than 40 million Americans. After-school programs that depend on federal dollars are closing.

    The Transportation Secretary said, starting Friday, there will be a 10% reduction in flights at 40 airports across the country.

    Republicans have pushed to reopen the government with a short-term spending bill. Democrats have rejected those bills, arguing that Republicans are leaving out a key provision: restoring expiring Affordable Care Act subsidies that help millions of Americans lower their health-insurance costs. Democrats say passing a short-term bill without those subsidies would leave families facing sudden premium spikes.

    “The election results ought to send a much needed bolt of lightning to Donald Trump that he should meet with us to end this crisis,” said Senate Democratic leader Chuck Schumer of New York. “The American people have spoken last night. End the shutdown, end the healthcare crisis, sit down and talk with us.”

    Republicans have said they’re willing to negotiate ACA subsidies, but only after the shutdown is over.

    See more government shutdown coverage from the Washington News Bureau:

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  • Federal tax credit for electric vehicles expires, but some state incentives remain

    The expiration of the $7,500 federal tax credit for electric vehicles, initially passed by Democrats during the Biden administration, leaves consumers looking for other ways to save on their next purchase.Experts say the tax credit previously helped make electric vehicles more affordable, increasing interest in them. Aaron Bragman, the Detroit Bureau Chief at Cars.com, said automakers are now offering electric vehicles that are both profitable for them and affordable for consumers. Bragman noted, “The tax credit has been good for just about everybody. It’s really kind of fostered this whole nascent industry of electric vehicles. It’s gotten people a lot more familiar with them and how they work. It’s helped to build out the infrastructure, the charging infrastructure in the United States, because there’s demand for it. People want the fast charging infrastructure throughout the country, even that has really been starting to accelerate.”There may still be separate incentives available at state and local levels. “The affordable EV isn’t necessarily going away, and there are still some incentives out there,” Bragman said. “It just takes some research and some partnering with your local dealership to find out what those might be where you are.”Car companies such as Ford, Nissan, and Kia are offering deals on electric vehicles, and Tesla has recently changed its referral program to boost incentives for consumers.Keep watching for the latest from the Washington News Bureau:

    WASHINGTON —

    The expiration of the $7,500 federal tax credit for electric vehicles, initially passed by Democrats during the Biden administration, leaves consumers looking for other ways to save on their next purchase.

    Experts say the tax credit previously helped make electric vehicles more affordable, increasing interest in them.

    Aaron Bragman, the Detroit Bureau Chief at Cars.com, said automakers are now offering electric vehicles that are both profitable for them and affordable for consumers.

    Bragman noted, “The tax credit has been good for just about everybody. It’s really kind of fostered this whole nascent industry of electric vehicles. It’s gotten people a lot more familiar with them and how they work. It’s helped to build out the infrastructure, the charging infrastructure in the United States, because there’s demand for it. People want the fast charging infrastructure throughout the country, even that has really been starting to accelerate.”

    There may still be separate incentives available at state and local levels.

    “The affordable EV isn’t necessarily going away, and there are still some incentives out there,” Bragman said. “It just takes some research and some partnering with your local dealership to find out what those might be where you are.”

    Car companies such as Ford, Nissan, and Kia are offering deals on electric vehicles, and Tesla has recently changed its referral program to boost incentives for consumers.

    Keep watching for the latest from the Washington News Bureau:

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  • Ford is cutting the price of the 2026 F-150 Lightning by up to $4,000

    Ford is cutting the price of the 2026 F-150 Lightning by up to $4,000, as confirmed by the automaker to CarsDirect. The price cuts vary by trim, however, and will only apply to more expensive packages for the electric pickup truck. This comes as the $7,500 EV tax credit expired at the end of September.

    The 2026 model has a starting price of $63,345 for the STX trim, which is the same price as the previous year’s entry-level XLT. The STX replaces the XLT and delivers 536 horsepower, up from the XLT’s 452, and 290 miles of range, up from 240.

    The Flash edition will receive the full $4,000 price cut, giving it a new price of $65,995. The Lariat, originally priced at $76,995, will get just a $2,000 haircut and will sell for $74,995. The Platinum edition will be priced at $84,995 and will not cost less.

    This summer, Ford announced that it would release an affordable midsize all-electric pickup with a starting price of around $30,000 in 2027. The truck would be built on the company’s upcoming Ford Universal EV Platform that will be shared by a new family of products. These models would use Ford’s upcoming prismatic LFP batteries.

    As EV-related tax incentives continue to expire, manufacturers will need to reach into their own pockets to deliver value to consumers. This week Tesla announced the Model 3 and Model Y ‘Standard’ editions, which give up some luxury touches in exchange for price, with both starting at under $40,000. Inflation has also played a large role in car pricing over the last five years, as $40,000 has roughly the same purchasing power as $32,000 in 2020.

    Ford recently walked back a program that would have enabled dealers to offer a $7,500 tax credit on EV leases even after the expiration of federal subsidies on September 30, as first reported by . The plan involved having the company’s lending arm purchase new EVs out of the brand’s dealers’ inventory, after which Ford would apply for the tax credit on the vehicles. That credit would then have been considered in the EV lease terms for customers, passing on the savings.

    GM was set to have a similar program before earlier this week. According to Reuters sources, GM killed the program after Republican Senator Bernie Moreno of Ohio raised concerns about it. It is unclear why Ford followed suit.

    Update 11:23 EST: Added more context.

    Andre Revilla

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  • Tax credit on home solar installation to sunset by 2026 – WTOP News

    Homeowners considering solar energy should act fast — federal tax credits covering up to 30% of installation costs are set to expire on Dec. 31.

    Anyone thinking of changing over to solar energy for their homes is seeing the window shut on that opportunity.

    The tax credit created as part of the 2022 Inflation Reduction Act “allowed homeowners to upgrade their electric fuse boxes as well as put solar panels on their roof, and it was a sort of uncapped tax credit of up to 30%,” said Quentin Scott, federal policy director at the Chesapeake Climate Action Network.

    He said the tax credit will expire Dec. 31.

    For homeowners who were on the fence about converting to solar, “that really cut down their initial cost by one third, which was exciting,” Scott said.

    But, Scott said, the passage of the legislation dubbed the “One Big Beautiful Bill” by President Donald Trump will phase out the tax credit by the end of the year.

    So his advice to homeowners is to make the move — and fast.

    “As long as they are able to get a contractor to start the work and complete that work before the end of this calendar year, they are able to file for this tax credit and get those discounts,” he said.

    One caveat, Scott said, is that projects “have to be 100% completed and placed in service,” to qualify for the credit.

    Scott said one impact of the expiration of incentives like the one for solar installation for homeowners is that “energy costs are going to go up because there’s less diverse energy being added to the grid.”

    Another reason that homeowners would want to act quickly is the concern over potential delays in the supply chain, as well as the availability of contractors when it comes to scheduling and completing the work.

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    Kate Ryan

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  • Md. Senate candidate Angela Alsobrooks responds to reports she improperly claimed tax credits – WTOP News

    Md. Senate candidate Angela Alsobrooks responds to reports she improperly claimed tax credits – WTOP News

    Democratic Senate Candidate and Prince George’s County Executive Angela Alsobrooks is responding to recent reports that she had been improperly claiming tax credits for two homes that she owned.

    Sign up for WTOP’s Election Desk weekly newsletter to stay up-to-date through Election Day 2024 with the latest developments in this historic presidential election cycle.

    Prince George’s County Executive Angela Alsobrooks speaks during an interview in Gaithersburg, Md., Friday, Sept. 20, 2024. (AP Photo/Daniel Kucin Jr.)(AP/Daniel Kucin Jr.)

    Democratic Senate Candidate and Prince George’s County Executive Angela Alsobrooks is responding to recent reports that she had been improperly claiming tax credits for two homes that she owned.

    She told reporters Monday night that she was unaware of two tax credits, first reported by CNN, until a few days ago.

    One tax credit was for a townhome in Upper Marlboro that she began renting after moving out into another home in 2008. She received a homestead tax exemption for that house, which is only meant for primary residences.

    “I bought a house and the tax credit didn’t transfer, and I didn’t realize that it hadn’t transferred,” she told reporters at her family barbeque event Monday in Greenbelt.

    Visit WTOP’s Election 2024 page for our comprehensive coverage. 

    The second tax credit she claimed yet was ineligible for was for her grandmother’s home that she took over in 2005 when her grandmother moved out. There she received a senior tax credit until she sold the house.

    “I took over the home and paid the mortgage until I sold the house in 2018 and was never notified,” she said. “Just didn’t know that there that she had taken a senior tax credit.”

    She likely saved thousands of dollars over the years because of the two tax exemptions, it’s money she said she plans to pay back.

    “We’re correcting it right away, so we reached out. I found out about it a few days ago, reached out, and it looks like it can be corrected pretty easily,” she said.

    Alsobrooks is in a competitive senate race with former Republican Gov. Larry Hogan.

    A spokesperson for his camp said, “She claims to be unaware of tax laws it was her job to enforce.”

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    © 2024 WTOP. All Rights Reserved. This website is not intended for users located within the European Economic Area.

    Luke Lukert

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  • Don’t Fall for Trump’s 2024 Pivot

    Don’t Fall for Trump’s 2024 Pivot

    The day after Labor Day traditionally marks the beginning of the general election season. Republicans have spent nearly a decade going full One America News—ceding party control to wingnuts like Marjorie Taylor Greene and Anna Paulina Luna; jettisoning anyone who doesn’t toe the Trumpy line, like Liz Cheney, Adam Kinzinger, and Jeff Flake; and electing as House Speaker “MAGA” Mike Johnson, whose main qualification for the job was spearheading a legal brief that sought to overturn the 2020 election. Now, the GOP is doing a last-minute pivot, trying to appeal to voters who don’t have a “MAGA123” license plate.

    Case in point: Last week, Donald Trump, who has openly bragged about gutting reproductive rights, laid out plans to defend IVF if elected. Keep in mind that Senate Republicans blocked a bill that would have codified the right to access IVF when Democrat Tammy Duckworth brought it to the floor in June. Those Republicans include the very normal, not-at-all-weird JD Vance, along with every other member of his party, except the two (relatively) sane ones: Susan Collins and Lisa Murkowski. State-level Republicans have also followed suit; for example, Alabama’s supreme court ruled that frozen embryos were actually children (yes, eight-celled children), forcing IVF clinics to halt their services. While this stance might sound crazy, it is completely in line with that of the Heritage Foundation, the think tank that published Project 2025, which has long subscribed to the concept of “fetal personhood” and has argued that IVF should be regulated.

    All in all, the GOP has brought nothing but danger to IVF. And yet Trump is attempting to triangulate on the issue, saying in an interview with NBC News last week that his administration would be “paying for that treatment. We’re going to be mandating that the insurance company pay.” It’s no surprise he’d say this, considering IVF is massively popular: Roughly 42% of Americans have used fertility treatments or know someone who has, as the Pew Research Center reported in September 2023, while a CBS News–YouGov poll released earlier this year found that 86% of Americans think IVF should be legal. That’s a lot of voters. But here’s the thing: In the first Trump administration, the former president tried to repeal Obamacare, the federally funded health care program that was saved by Republican senator John McCain in 2017 when he broke rank with his party. So is this to say that Trump is now in support of some form of public health care?

    Trump is not the only one attempting a less radical rebrand. Consider JD Vance’s stance on the federal child tax credit, which temporarily increased to $3,600 under Joe Biden’s 2021 pandemic-era rescue plan. “I’d love to see a child tax credit that’s $5,000 per child,” Vance told Face the Nation in August. The child poverty rate reached a historic low the year the higher tax credit was in effect, so bravo to Vance for supporting it now! But the inconvenient truth is that, just days before appearing on Face the Nation, Vance skipped a vote on a bill that would have again expanded the child tax credit; it failed in the Senate 48-44. So, when Vance says he’d “love” to see a bigger child tax credit, he has a lot of explaining to do.

    It’s impossible to pin down the exact reason why people like Trump and Vance are pivoting to more centrist policies, but if I had to hazard a wild guess, it’s the same reason Trump disavowed Project 2025: The GOP’s actual policies are deeply unpopular. No one wants tax cuts for the wealthy and corporations, exonerations of Trump and the January 6 rioters, or what many economists predict would be highly inflationary tariffs. Now the former president is suddenly trying to neutralize his terrible platform with gauzy centrist policies. But make no mistake: If he gets in office, Trump will almost surely abandon his bid for moderation and make his dystopian vision a reality, from erecting mass deportation camps for migrants to installing a federal bureaucracy full of loyalists.

    Popular will and the GOP have about as much chemistry as Trump and his teleprompter, largely because the former president’s stunts touch every part of the GOP. In the House, which Republicans are desperately trying to hold onto, you have so-called centrist congressmen like Mike Lawler, Marc Molinaro, Anthony D’Esposito, and Brandon Williams—all of whom backed Mike Johnson as Speaker, and voted to impeach both Biden and Homeland Security Secretary Alejandro Nicholas Mayorkas. How can these congressmen advertise themselves as “sensible” moderates when they vote with Marjorie Taylor Green, jacketless Jim Jordan, and the rest of the QAnon crazies practically 99% of the time? Hard to say. But one thing’s for sure: By embracing the craziest element of their base, they are ultimately going to have to answer for it—if journalists bother asking.

    Molly Jong-Fast

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  • Healey signs $5.1B housing bond bill

    Healey signs $5.1B housing bond bill

    BOSTON — Gov. Maura Healey signed a $5.1 billion bond bill Tuesday aimed at boosting the state’s dwindling housing stock, but critics say the plan will do little to help struggling renters and people now at risk of losing their homes.

    The measure, approved on the final day of formal legislative sessions, includes a mix of bonding, policy changes, tax breaks and other incentives to help spur the much-needed development of new homes.

    Healey, a first-term Democrat who has made housing a key part of her legislative agenda, described the measure as the “most ambitious” in state history to address what she called the state’s “toughest” challenge.

    “The Affordable Homes Act creates homes for every kind of household, at every stage of life, and unlocks the potential in our neighborhoods,” Healey said in a statement. “Today we are taking an unprecedented step forward in building a stronger Massachusetts where everyone can afford to live.”

    Under the plan, at least $2 billion will be devoted to the rehabilitation of more than 43,000 public housing units, with 25% of the money dedicated to preserving housing for those with low incomes.

    The bill also calls for diverting $800 million to the state’s Affordable Housing Trust Fund to create and preserve affordable housing for households whose incomes are not more than 110% of area median income.

    Among the policy initiatives in the bill is a proposal to authorize accessory dwelling units equal to or less than 900 square feet to be built by-right in single-family zoning districts in all communities.

    The plan expands funding for the state’s Community Investment Tax Credit Program, which funds community development corporations that partner with nonprofits to build affordable housing across the state.

    Under the tax credit program, donations to community development corporations that qualify are eligible to receive a 50% refundable tax credit.

    The Senate approved the $5.4 billion housing bond bill in May and the House followed in June with a $6.5 billion bill. Differences between the two bills were worked out by a six-member committee, which announced a compromise on the final day of formal sessions.

    Lawmakers rejected Healey’s controversial proposal to give communities the authority to add transfer fees from 2% to 5% onto property tax bills to fund affordable housing, which faced opposition from the real estate industry.

    Lawmakers also rejected a plan to spend $1 billion to allow the Massachusetts Water Resources Authority’s water system to be expanded to the Ipswich River Basin, which includes Beverly, Danvers, Ipswich, Middleton, Peabody, Salem and other communities north of Boston.

    And some housing advocates say the changes in the new law will do little to help people who are now struggling to pay the rent or facing foreclosure.

    “The housing bond bill includes meaningful funding to support public housing and build new affordable housing, but legislators failed to include any tools to help renters who are facing enormous rent hikes and eviction today,” said Carolyn Chou, executive director of the group Homes for All Mass.

    Homes for All Mass was pushing for inclusion of a proposal that would allow cities and towns to stabilize rents by pegging increases to the rate of inflation with a cap at 5% and protect tenants by banning no-fault evictions.

    “We need strong rent stabilization now to protect people during the decades it will take to make housing more affordable in Massachusetts,” Chou said.

    The housing bill was a top priority for Healey and other Beacon Hill leaders, who are trying to spur more home building amid a shrinking inventory that is edging first-time buyers out of the market.

    The prolonged housing crunch is affecting the state’s economic growth, making it much harder to attract new families and companies, they say.

    Massachusetts has some of the highest housing costs and rents in the country. The median price of a single-family home hit a record $609,000 in June, according to real estate industry reports. Meanwhile, single-family home sales were down in June versus the same month last year.

    Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at cwade@cnhinews.com

    By Christian M. Wade | Statehouse Reporter

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  • House OKs $6.5B housing bill, drops transfer fee

    House OKs $6.5B housing bill, drops transfer fee

    BOSTON — The state House of Representatives on Wednesday approved a $6.5 billion housing bill aimed at spurring the production of new homes, but dropped a controversial tax on real estate transactions to pay for housing development.

    The proposal, which passed 145-13, calls for a mix of tax breaks, changes to state laws, and bond authorization to increase the construction of much-needed market rate and affordable homes throughout the state.

    “The rents are high, the availability of stock is decreasing, there’s very few homes on the market,” House Speaker Ron Mariano, a Quincy Democrat, told reporters ahead of a final vote on the bill. “When you talk to folks and they say they don’t want to locate here because they can’t find homes for their staff or their employees, it’s a real problem.”

    The House bill adds more than $2.4 billion to Gov. Maura Healey’s $4.1 billion Affordable Homes Act plan, filed in October, which also included a range of tax breaks, policy changes and borrowing.

    It also didn’t include Healey’s controversial proposal to give communities the authority to add transfer fees from 2% to 5% onto property tax bills to pay for affordable housing projects.

    The proposal faced significant opposition from real estate brokers and other critics who argued it would drive up the costs of housing.

    The bill includes $1 billion to allow the Massachusetts Water Resources Authority’s water system to expand to the Ipswich River Basin, which includes Beverly, Danvers, Ipswich, Middleton, Peabody, Salem and other communities north of Boston.

    Lawmakers argue that the spending will help expand access to water resources in the region to offset the impact from building new homes and housing complexes.

    The proposal also includes a new $150 million program to help municipalities convert commercial properties for multiunit residential or mixed use. Developers would be eligible for a tax credit of up to 10% of the development costs.

    The bill also includes a new tax credit to incentivize production of home ownership units targeting households with incomes of up to 120% of the area median income, according to House Democrats.

    At least $2 billion would be devoted to the rehabilitation of more than 43,000 public housing units in the state, with 25% of the money dedicated to preserving housing for those with low incomes.

    The plan also makes permanent the state’s Community Investment Tax Credit Program, which funds community development corporations that build affordable housing, and raises the cap on donations from $12 million to $15 million.

    The policy initiatives in the bill include a proposal to authorize accessory dwelling units equal to or less than 900 square feet to be built by-right in single-family zoning districts in all communities.

    House lawmakers slogged through more than 200 amendments to the bill and approved dozens of them in bundles that passed on voice votes. The changes added another $300 million in borrowing to the final version of the bill.

    The legislation must be approved by the state Senate before it returns to Gov. Maura Healey’s desk for consideration.

    Beacon Hill leaders are trying to incentivize more home building amid a shrinking inventory they say is edging first-time buyers out of the market.

    The prolonged housing crunch is hurting the state’s economic growth, they say, making it much harder to attract new families and companies to invest in the state.

    Massachusetts has some of the highest housing costs and rents in the country. The median price of a single-family home hit a record $560,000 in March, according to real estate industry reports. Meanwhile, single-family home sales were down 7.4% in March versus the same month last year.

    Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at cwade@cnhinews.com.

    By Christian M. Wade | Statehouse Reporter

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  • New IRS Direct File program now available in California

    New IRS Direct File program now available in California

    If you’re a California resident and haven’t done your federal tax return for 2023, you now have another, more user-friendly option online: the free Direct File service from the IRS.

    It’s not for everyone, however. Instead, it’s aimed mainly at people with very simple annual tax returns, which the Treasury Department said amounts to about 1 of every 3 taxpayers.

    The tax agency launched the Direct File service in January on an extremely limited basis to make sure its online systems were up to the task. That changed Monday, when the IRS announced that Direct File was available to all taxpayers in California, Arizona, Nevada and nine other states.

    Think of Direct File as the IRS’ alternative to the free online tax-filing programs from TurboTax and H&R Block. It provides step-by-step guidance for filling out your tax forms, filing them and either paying any amount you might owe or collecting your refund.

    The program’s question-and-answer approach means you won’t have to know which forms to fill out or where on the forms to enter your information. Instead, the program will handle those details for you.

    The IRS already works with several tax-prep companies to offer lower-income taxpayers a free online tax return service called Free File. What makes Direct File different is that there’s no middleman and no income limit for participants — anyone can use it, provided that their tax returns use only the most basic forms.

    Specifically, the program will work only for taxpayers whose income is limited to wages reported on a W-2, retirement benefits from Social Security or the Railroad Retirement Board, unemployment benefits or interest income of $1,500 or less. That means if you’re a self-employed person, a business owner, a contractor or a gig worker, or if you have income from a partnership or trust, Direct File isn’t for you.

    The Treasury Department estimates that 19 million people in the 12 participating states are eligible to use Direct File this year and that several hundred thousand people will do so.

    Direct File also allows you to claim only a truncated list of credits and deductions: the Earned Income Tax Credit for low-income workers, the credits for children and other dependents, the standard deduction and deductions for student loan interest payments and educators’ classroom and professional development expenses. If you’re able to claim other credits and deductions, such as those for foreign taxes paid, child care or retirement savings, or if you cut your tax bill by itemizing deductions (for example, if you have sizable medical expenses), Direct File would not be a good choice for you.

    One other caution: The IRS says Direct File will be available only until April 15, when most Californians’ 2023 returns are due. The agency pushed the deadline for taxpayers in San Diego County back to June 17 in response to the federal disaster declaration in that county.

    Direct File runs online only; you’ll need a smartphone, tablet or computer to access it. And to get started, you’ll need to prove to the IRS that you are who you say you are.

    The only way to do that this year will be to use the identity verification service ID.me, which takes a scan of your government-issued picture ID, such as your driver’s license or passport, then uses facial-recognition software to match your image from a live chat session or a new selfie against the stored photo. ID.me has raised concerns among some critics, who say it poses too great a threat to privacy and security.

    Once you’ve established your identity, the program will check your eligibility, then guide you as you enter information about your income, credits and deductions. You don’t need to download any software, the IRS said; instead, your entries will be saved online, and you’ll be able to pause and resume later without having to start over.

    Direct File has a live chat feature to help taxpayers with questions, but it’s not a source of free tax advice.

    “IRS customer service representatives can provide technical support and provide basic clarification of tax law related to the tax scope of Direct File,” the agency said in a release. “Questions related to issues other than Direct File will be routed to other IRS customer support, as appropriate.”

    The Direct File service hasn’t been integrated into California’s tax filing system yet, so you won’t be able to transfer your federal information seamlessly to your state return. The state Franchise Tax Board offers a free online return filing system called CalFile whose restrictions are similar to those in Direct File, so if you’re eligible for the latter, you’re probably able to use the former.

    If you’re entitled to a refund, tax experts say, you should file your return as soon as possible. Otherwise, you’re just making an interest-free loan to the federal government.

    Jon Healey

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  • These 23 movies, shows are being filmed all over Ohio

    These 23 movies, shows are being filmed all over Ohio

    *Related Video Above: Celebrities from Ohio**

    CLEVELAND (WJW) – The state of Ohio is giving $44 million in tax credits to film TV series and feature films across the state.

    The Ohio Department of Development announced earlier this week that $44 million is being awarded through the Ohio Motion Picture Tax Credit Program.

    “Investing in these productions fuels the vibrant creativity that’s alive in Ohio’s communities and serves as a powerful catalyst for economic growth,” Ohio Department of Development Director Lydia Mihalik said in a press release. “These projects celebrate and showcase our diverse landscapes, generate jobs, stimulate local businesses, and create a lasting legacy for the arts in Ohio.”

    The tax credits are going to 23 different productions, which are expected to create 530 full-time jobs, according to the release.

    TV series and feature films being awarded include:

    • An Interesting Life Season 2, Southwest Ohio, $432,300
    • WWE 2024, Ohio, $1,675,986
    • Nightmare Transmission Season 2, Ashland/Columbus, $265,247.40
    • Heartland Horror Chronicles Season 1, Crestline, $129,444
    • Christmas on Main, Ashland, $148,842
    • Kings of Vegas, Cleveland, $105,878.25
    • Genesis, Cleveland/Cincinnati, $11,091,686.70
    • Superthief, Northeast Ohio, $5,296,260.30
    • Alarum, Cincinnati, $5,863,392.30
    • Epiphany, Cincinnati, $6,052,988.40
    • Stained Glass, Southwest Ohio, $3,026,255
    • The Marshal, Southwest Ohio, $2,380,988.40
    • Nutcracker’s Mustache, Dayton/Cincinnati, $2,008,106.70
    • The Last of the Big-time Promoters, Southwest Ohio, $985,500
    • Never Quit, The Todd Crandell Story, Toledo, $1,256,153.40
    • Harbor Master, Northeast Ohio, $1,113,364.80
    • Down to the Felt, Columbus, $385,853.70
    • Oscar’s Options, Cincinnati, $823,269.60
    • Slay, Columbus, $519,603.60
    • The Forgotten Chord, Columbus, $115,651.50
    • Heavenly Wickedness, Ashtabula, $110,625
    • Cannonballer, Summit, $148,371
    • Aimless, Columbus, $93,313.50

    The project costs total nearly $503 million in production expenses and $146.7 million in total eligible production expenses.

    The Ohio Motion Picture Tax Credit was created in 2009 to encourage and develop a strong film industry in Ohio, according to the release. The program provides a tax credit of 30% on production cast and crew wages and other in-state spending for eligible productions.

    Celeste Houmard

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  • New year, new way to file your tax return for free: The IRS launches Direct File pilot program

    New year, new way to file your tax return for free: The IRS launches Direct File pilot program


    It’s back to regular IRS deadlines for California taxpayers this year, but with a new tool for many low- and moderate-income households: a service that will prepare and file their tax returns online for free.

    Starting later this year, taxpayers in California, Arizona, Nevada and nine other states will have access to a new program from the IRS called Direct File. Unlike the free filing options the IRS provides through third parties or the free services from TurboTax and H&R Block, Direct File enables you to send sensitive financial information directly to the IRS — no middleman required.

    It’s also the first service from the agency itself that guides you through the process of filling out your return. And its chat feature can provide answers to basic tax questions in real time from IRS customer service representatives.

    There’s a catch, however. Although Direct File is available to California taxpayers regardless of how much they earn, it can be used only by people who earn income in limited types of ways. For example, Direct File is not for you if you have income from a business you own, subcontracting work or gig-economy jobs.

    Regardless of how you do your taxes, you won’t have an automatic extension of the deadline for filing your 2023 return — at least not yet.

    Because of the damage caused by winter storms last year, most taxpayers in California had until mid-November to complete their 2022 returns and pay what they owed. There have been no federal disaster declarations in California thus far, so the deadline for filing your federal and state returns for 2023 remains April 15.

    If you’re entitled to a refund, tax experts say, you should file your return as soon as possible. Otherwise, you’re just lending interest-free money to the federal government.

    Here’s what you need to know about Direct File.

    Who will have access to Direct File?

    The IRS is rolling out the program slowly to try to work out the kinks before releasing it to the general public. In addition to limiting access to taxpayers in 12 states — California, Arizona, Nevada, Washington, Florida, Massachusetts, New Hampshire, New York, South Dakota, Tennessee, Texas and Wyoming — it will make Direct File available at its Monday launch only to people who’ve been invited to test the system.

    “Using a phased approach like this means that the pilot will not be available to all eligible taxpayers immediately when the IRS begins accepting federal tax returns” on Monday, the agency said on its website. According to the San Francisco Chronicle, the agency expects to open the program to more taxpayers by mid-March.

    You’ll be able to sign up on the IRS’ Direct File site for an alert telling you when the program is available to you.

    Who can use Direct File?

    The program will work only for taxpayers whose income is limited to wages reported on a W-2, retirement benefits from Social Security or the Railroad Retirement Board, unemployment benefits or interest income of $1,500 or less. That means if you’re a self-employed person, a business owner or a contractor, or if you have income from a partnership or trust, Direct File isn’t for you.

    Direct File also allows you to claim only a truncated list of credits and deductions: the Earned Income Tax Credit for low-income workers, the credits for children and other dependents, the standard deduction, and the deductions for student loan interest payments and educators’ classroom and professional development expenses. If you’re able to claim other credits and deductions, such as those for foreign taxes paid, child care or retirement savings, or if you cut your tax bill by itemizing deductions (for example, if you have sizable medical expenses), Direct File would not be a good choice.

    The forms and chat help are available in English and Spanish.

    How do you use Direct File?

    The program runs online only; you’ll need a smartphone, tablet or computer to access it. And to get started, you’ll need to prove to the IRS that you are who you say you are.

    The only way to do that this year will be to use the identify verification service ID.me. ID.me takes a scan of your government-issued picture ID, such as your driver’s license or passport, then uses facial-recognition software to match your image from a live chat session or a new selfie against the stored photo. ID.me has raised concerns among some critics, who say it poses too great a threat to privacy and security.

    Once you’ve established your identity, the program will check your eligibility, then guide you as you enter information about your income, credits and deductions. You don’t need to download any software, the IRS said; instead, your entries will be saved online, and you’ll be able to pause and resume later without having to start over.

    The program’s question-and-answer approach means you won’t have to know which forms to fill out or where on the forms to enter your information. Instead, the program will handle those details for you. That sort of virtual hand-holding is similar to what you’d get by using commercial tax preparation software.

    Can you fill out your California tax return through Direct File?

    No, the information you enter through Direct File will not flow automatically onto your state tax forms — California is not one of the handful of states that have enabled it. Instead, the state Franchise Tax Board offers CalFile, as a way for qualified taxpayers to file their returns for free online. The restrictions on participating in CalFile are similar to those in Direct File, so if you’re eligible for the latter, you’re probably able to use the former.

    What are the alternatives for filing your tax return for free?

    The IRS already offers its Free File service to taxpayers whose adjusted gross income — that is, income minus certain deductions, including retirement savings contributions and student loan interest payments — was $79,000 or less in 2023. Unlike Direct File, taxpayers with earnings from self-employment, their own businesses, investments or gig work are eligible, as long as they meet the income limits.

    There is a version of Free File that lets you fill out forms directly online, with no guidance from the IRS. The more accessible version, though, connects you to any of eight online tax-preparation services, which will help you prepare your return for free.

    In addition, the AARP Foundation Tax-Aide and the IRS-sponsored Volunteer Income Tax Assistance program can connect you to a volunteer tax preparer who will do your tax return for you or help you do it yourself, at no charge to you. These services provide tax preparation or guidance only to low- and moderate-income taxpayers who meet the income limits, or who have disabilities or limited English proficiency.

    Intuit’s TurboTax and H&R Block also make free versions of their tax preparation and filing software available online. There’s no income limit, but the services work only with basic returns that demand little more than a 1040 form. That would exclude anyone with income or losses from a small business, for example, or whose investments pay more than $1,500 in dividends.



    Jon Healey

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  • Innovation Refunds’ CEO Howard Makler Discusses How Businesses Can Protect Themselves From Bad Players in the Employee Retention Credit Industry

    Innovation Refunds’ CEO Howard Makler Discusses How Businesses Can Protect Themselves From Bad Players in the Employee Retention Credit Industry

    Many businesses are entitled to the Employee Retention Credit created under the CARES Act, and Innovation Refunds is encouraging them to learn more about the process to get the most out of their refund and avoid engaging with any bad actors in the space.

    Press Release
    –

    Dec 13, 2022


    DES MOINES, Iowa, December 13, 2022 (Newswire.com)
    –
    While Innovation Refunds and other turnkey tax solution providers have been helping thousands of businesses secure life-changing ERCs (Employee Retention Credits) over the past two years, other players within the space have emerged with less than honorable intentions. According to Innovation Refunds CEO Howard Makler, several ERC mills have been taking advantage of small, vulnerable companies by charging exorbitant fees for ERC verifications and by taking huge percentages of the credit funding upon its approval and issuing. 

    Congress launched the Employee Retention Credit (ERC) program under the CARES Act in 2020 in response to the COVID-19 outbreak in the United States. The program encourages businesses to keep employees on their payroll by providing refundable tax credits that cover 50% of wages paid by an eligible employer, up to $10,000. Certain companies have qualified for payroll tax refunds of up to $26,000 per employee, even if they have received Paycheck Protection Program (PPP) funds.

    The rules and regulations tied to ERC tax credits have been revised multiple times under the CARES Act. This has led to constant confusion among business owners regarding the program’s eligibility requirements. As a result, a litany of ERC companies have surfaced to meet the demand for specialized assistance with the verification and application processes. Often, these firms only manage ERC tax refunds and are always up to date with the latest regulations. 

    However, per Makler, there are a few key indicators that business owners can use to differentiate real ERC companies from the bad players. By arming themselves with this knowledge, business owners and executives can avoid engaging with corrupt organizations altogether. 

    Makler noted how the first red flag small businesses should be wary of is any mention of an ERC verification or qualification fee. The verification process itself should have no associated costs whatsoever. 

    “The Innovation Refunds team has conducted hundreds of verification checks since the launch of the ERC program, never once having charged a small business for said service. Innovation Refunds and other legitimate ERC companies only request payment from small businesses after they have received their tax credit returns,” said Makler. 

    Makler went on to advise small businesses to do their research when it comes to evaluating ERC-focused firms. Evaluating whether an ERC business has any partnerships in place is critical to determining its level of credibility.  

    “Testimonials and a proven track record are essential,” said Makler.” “We have helped over 60 community banks educate their clients on ERC, most of which could speak to the value we have brought them through our services and support.” 

    Ultimately, Makler and the Innovation Refunds team want small businesses to acknowledge the existence of the malicious actors within the space while still making the effort to seek the tax return credits they need and deserve. 

    “Navigating the ever-changing and confusing world of ERC can be challenging, but conducting quality research into the firms that are supposed to be helping you secure your tax return credit can be the difference between receiving critical support from the government and losing out big time,” said Makler.  

    As quarterly rollbacks begin to limit ERC claims in the coming months, the Innovation Refunds team aims to serve as a voice of education. Please visit https://www.innovationrefunds.com/ for more information. 

    About Innovation Refunds

    Our mission is to assist small and medium-sized businesses to attain cash incentives from federal and state governments.

    Innovation Refunds began providing its services in 2020. Since then, it has been able to provide financial solutions to thousands of companies, with billions in cash refunds available for small and medium-sized businesses.

    To learn more, visit www.innovationrefunds.com. 

    Source: Innovation Refunds

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  • Innovation Refunds Educates Banks on Verifying Clients for Employee Retention Credit

    Innovation Refunds Educates Banks on Verifying Clients for Employee Retention Credit

    The company aims to help banks become advisors for their clients, so they can take advantage of the payroll tax credit.

    Press Release
    –

    Nov 21, 2022 07:00 CST


    DES MOINES, Iowa, November 21, 2022 (Newswire.com)
    –
    The Employee Retention Credit (ERC) can provide a critical payroll tax refund for businesses.  Innovation Refunds, an industry leader in turnkey tax solutions, is advising banks on how they can assist their clients in qualifying for the tax credit.

    Innovation Refunds recently attended the American Bankers Association annual convention,  providing banks with guidance on how they help their clients with ERC. Just as banks educated and connected clients with the Small Business Administration’s Paycheck Protection Program (PPP) loans, they now can play a similar role with the ERC.

    Qualifying for the ERC could make or break a business in today’s economy. With the ERC, companies are eligible for a payroll tax refund of up to $26,000 per employee, even if they have received PPP funds. The average refund is over $400K through Innovation Refund’s bank partners. 

    Innovation Refunds, which does not charge any upfront costs when verifying businesses for ERC, has now empowered more than 60 community banks in helping their clients receive payroll refund money. The company specializes solely in ERC, which enables its team members to be experts on the most up-to-date changes in rules and regulations.

    “Banks can play a critical role by being an advisor to clients and educating them about the availability of the ERC to ensure the money gets back into the hands of small and middle-sized businesses that were impacted by the pandemic,” said Howard Makler, CEO of Innovation Refunds.

    Innovation Refunds assists banks in developing marketing campaigns around the ERC to spread awareness to banks’ small and medium-sized business clients on what they can do to apply for the ERC. This is achieved through a comprehensive strategy that includes social posts, email playbooks, direct mailers, email blasts, text messages, and other tactical channels. All of these assets are customized to each bank’s branding.

    “The ability to receive ERC funds will expire gradually by late 2024, so time is of the essence to offer this critical education,” Makler said. “Innovation Refunds wants to be the marketing engine that offers a turnkey solution to help banks send this message to their business clients and make it easy for them to spread the word.”

    The Internal Revenue Service (IRS) anticipates that 70-80% of businesses are good candidates for the ERC. Qualifying for the payroll tax refund can be a game-changer for a company that has been impacted by the pandemic, and Innovation Refunds is a valuable resource in helping them avoid leaving money on the table. 

    To partner with Innovation Refunds, email bankpartner@innovationrefunds.com. To learn more, visit www.innovationrefunds.com.

    About Innovation Refunds
    Our mission is to assist small and medium-sized businesses to attain cash incentives from federal and state governments. Innovation Refunds began providing its services in 2020. Since then, it has been able to provide financial solutions to thousands of companies, with billions in cash refunds available for small and medium-sized businesses. To learn more, visit www.innovationrefunds.com.

    Source: Innovation Refunds

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  • Innovation Refunds Helps Connect California Animal Feed Company with ERC Benefits and Relief

    Innovation Refunds Helps Connect California Animal Feed Company with ERC Benefits and Relief

    The ERC benefits helped Lomita Feed retain workers and cover costs amid the pandemic when fears of a feed shortage nearly put the industry into supply shock.

    Press Release
    –

    Sep 28, 2022


    DES MOINES, Iowa, September 28, 2022 (Newswire.com)
    –
    With help from Innovation Refunds, the industry leader in turnkey tax solutions, California-based Lomita Feed successfully obtained critical Employee Retention Credit (ERC) funding. The 101-year-old animal feed storefront used the ERC benefits to retain employees and cover expansion costs throughout the COVID-19 pandemic.

    Lomita Feed owner Bill Lockwood first heard about Innovation Refunds through a radio ad. With the pandemic in full swing, feed stores in the U.S. began experiencing the effects of the supply chain shortage. Lockwood, along with other feed store owners, urged buyers to minimize over-shopping as inventories reached critical levels across the country.

    By guiding Lockwood and his team through the ERC application process, Innovation Refunds connected Lomita Feed with critical ERC funding to expand the original storefront to include the Doc Gunner Saddlery. Named after one of Lockwood’s late horses, Gunner, the saddlery was launched in tandem with the Doc Gunner Foundation.

    Lockwood, driven by his passion for rescuing animals, expressed his gratitude for the Innovation Refunds team’s assistance during such a stressful period, saying, “Innovation Refunds made it very simple. Just had to get a few of my records together, submit that, and they made it as painless as possible. It allowed us to keep the amount of people that we needed.”

    Lockwood’s plans include helping underprivileged children learn to ride and take care of horses through the Doc Gunner Foundation, made possible by the increased profits from the expanded storefront. He also plans to dedicate a percentage of all sales to Hyperkalemic Periodic Paralysis (HYPP) research. “I believe that you take care of the people that take care of you,” added Lockwood. “The community has taken care of us. The employees have allowed that to occur. Because of that, I had a responsibility to take care of all of them as well.”

    “Our team is thrilled to hear about Lomita Feed’s expansion project and charitable efforts made possible through ERC relief,” said Howard Makler, CEO of Innovation Refunds. “Stories from mission-driven companies like Lomita Feed are great reminders as to why we are helping small and midsize businesses with their claims.”

    To learn more about Innovation Refunds’ mission to help small and midsize businesses secure funding through government relief programs, please visit www.innovationrefunds.com.

    About Innovation Refunds

    Our mission is to assist small and medium-sized businesses to attain cash incentives from federal and state governments.

    Innovation Refunds began providing its services in 2020. Since then, it has been able to provide financial solutions to thousands of companies, with billions in cash refunds available for small and medium-sized businesses.

    Source: Innovation Refunds

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  • Phoenix Nursing Home Received Critical ERC Benefits With Help From Innovation Refunds

    Phoenix Nursing Home Received Critical ERC Benefits With Help From Innovation Refunds

    The benefits allowed Paradise for Parents to maintain healthy resident standards while rewarding its deserving staff amid critical supply shortages.

    Press Release
    –

    Sep 26, 2022


    DES MOINES, Iowa, September 26, 2022 (Newswire.com)
    –
    Through a key partnership with Innovation Refunds, Phoenix-based nursing home Paradise for Parents was able to secure critical ERC funding, which paid for essential facility equipment and a much-deserved employee bonus. As a turnkey tax solutions firm specializing in Employee Retention Credit (ERC) and payroll tax refunds, Innovation Refunds took care of the entire ERC application process and was able to connect Paradise for Parents with the capital they needed to maintain operations.

    When Hal Cranmer, co-owner of Paradise for Parents, first heard about Innovation Refunds through a radio advertisement, he knew he needed to take immediate action. At the time, the COVID-19 pandemic was in full swing. The spread of the virus severely impacted the U.S. supply chain, and the nursing home needed capital to cover the costs of critical supplies for residents. 

    The impact on the supply chain put substantial pressure on Cranmer and his staff. He still recalls the stress, remembering when he desperately made calls to secure enough toilet paper for 50 residents in the middle of the initial supply chain shortage.

    The facility needed additional funding to secure protective gear to prevent COVID from spreading to its residents and employees and to install technology that would allow residents to see and speak with their families, who were no longer allowed to visit due to government restrictions. The Innovation Refunds team oversaw and managed the entire ERC application process for Paradise for Parents. After conducting a cross-checking analysis, the team determined that the nursing home qualified to receive employee retention credit.

    “Hal and his team had a strong desire to keep residents and staff members safe amid the most challenging moments of the pandemic,” said Innovation Refunds CEO Howard Makler. “Once we verified Paradise for Parents’ refund eligibility, our team was motivated to accelerate the application process to supply the home with the funding they needed as fast as possible.” 

    Upon receiving the ERC benefits, Cranmer decided to dedicate a portion of the funds to support his employees directly in the form of a bonus. 

    “Several employees called me, saying they thought I paid too much,” said Cranmer. “I would tell them, ‘No, I didn’t. We got this refund because of you, so you deserve it.’ I felt it was essential to recognize and compensate our staff members who worked and persevered through such difficult times.”

    Cranmer also utilized some ERC funding to hire an immigration lawyer to help bring some of the caregivers’ families to America to reunite them during the pandemic.

    To learn more about Innovation Refunds and its Employee Retention Credit and payroll tax refund services, please visit www.innovationrefunds.com. 

    About Innovation Refunds
    Our mission is to assist small and medium-sized businesses to attain cash incentives from federal and state governments.

    Innovation Refunds began providing its services in 2020. Since then, it has been able to provide financial solutions to thousands of companies, with billions in cash refunds available for small and medium-sized businesses.

    Source: Innovation Refunds

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