As the year 2013 comes to a close, taxpayers and their advisors are looking for ways to trim their tax bills. One way that has become increasingly popular in recent years is the purchase of state tax credits. State tax credits can be purchased at a discount, saving taxpayers potentially thousands of dollars on their state income taxes. There are a variety of different types of credits, including Low Income Housing Credits, Entertainment (or Film) Tax Credits, Retraining Tax Credits, and Jobs Tax Credits -- just to name a few. While most of these credits have to be purchased prior to year-end, there are even some that can be purchased in 2014 but used to offset your 2013 state income tax. We would welcome the opportunity to discuss your potential need for state tax credits.
J Pease, IV, CPA