It is a fact that the primary purpose of a tax law is to raise revenue.  It is also true that lawmakers use tax laws to encourage or discourage a particular behavior.  Tax incentives can be used to encourage capital spending, hire more employees or train a current workforce.  A new tax incentive, such as quickly depreciating manufacturing equipment, may encourage a company to purchase large capital assets for their production line.  A company’s financial management team should consider all of the tax and cash flow expenditures before making a large equipment purchase or hiring many full time employees.  Nothing justifies the purchase of capital assets more than good old-fashion tax planning of a company’s growth intentions.

If your company is growing, hiring or moving, give your Somerset advisor a call.  They will be able to talk about tax incentives and how these incentives can help you cash flow the company growth.