Number 1: The State of California is giving certain industries refunds/credits for improvements to buildings and construction of new buildings including the labor to improve/construct these buildings.

Number 3: The refunds/credits can be used in three ways:

a) refunds can go back three years for new businesses.

b) credits can be used to offset past tax, going back up to four years.

c) credits can be carried forward 8 or 10 years offsetting tax.

Number 4: The credits/refunds available are substantial and if incorrectly taken or computed could lead to large audit liabilities.

Many businesses in this industry are not taking these credits. It may be that companies are unaware of them or how to they are computed. Whatever the reason you should take our time to explore if you qualify and if your refund/credit is material enough to pursue.

Producers of software are also now eligible for special manufacture's exemption/investment tax credits.

Most states have these types of credits available