thekac.com

A new state tax credit goes into effect July 1, 2011 that will allow area businesses to claim an income and franchise tax credit equal to five percent of contracted payments to non-profit Community Rehabilitation Providers (CRP) for services.

The tax credit creates an incentive for Wisconsin businesses to outsource manufacturing, janitorial services, and other commercial services to non-profit organizations that provide employment support and other services to adults with disabilities in Wisconsin.

This is a win-win for KAC and Wisconsin businesses. While providing an attractive financial incentive for businesses who partner with KAC, this will also help provide even greater opportunities for adults with disabilities in the community.

Businesses can claim up to $25,000 per CRP annually for qualifying expenses. Each business can also carry forward any unused portion of their credits for a period of five years. The credit can be applied to the labor portion of any contract with a CRP

While the credit goes into effect July 1, most businesses will not be able to begin using it until January 2012, when their taxable year begins. However, businesses may be able to make arrangements to have work performed by a CRP in late 2011 and billed in January 2012 to qualify.