Digital Media

Background

This top 3 player in digital media handles the lion’s share of post production for the television, film and movie business.

Through a combination of acquisition and explosive growth in the digital media business, this company exponentially increased its size and workforce over the last few years. With expansion, however, the firm was unexpectedly burdened with a large tax liability for the first time in years.

Fortunately, they sat squarely at the epicenter of not only the digital media revolution, but a new Los Angeles Enterprise Zone.

Solution

The company needed an experienced team to generate enough tax credits to offset their state tax liability. Enter Tax Credit Co., with years of experience, and a trusted reputation with the California State Franchise Tax Board.

Tax Credit Co. placed a team inside the client location to identify and pursue credit-generating hires, both past and present, which could potentially involve as many as half the new workers in the company.

Field analysts, CPA’s, and tax specialists obtained location and background data, and where necessary conducted personal interviews for recently hired and past employees. Then quality control analysts meticulously assembled an “audit ready” documentation package that client financial management could use with 99% confidence for any audit challenge.

Results

Tax Credit Co. yielded a 40+% decrease in California tax. And of equal importance, Tax Credit Co.’s custom designed Tax Incentive Portal continues to allow HR, hiring managers, and tax and financial management to monitor qualification, certification and calculation of hiring based incentives in real time.