Articles and Tax Resources | Industry News | ABGi USA

CFO.com: Strategic tax incentive planning: A CFO’s guide to enhancing cash flow

Written by ABGi USA | April 21, 2025
Forward-thinking financial leadership in a dynamic tax environment
Published April 21, 2025 | CFO.com
 

In today’s rapidly evolving economic climate, the role of the CFO goes far beyond financial reporting. Cash flow has become the true heartbeat of a healthy organization, and one of the most underleveraged tools to protect it is strategic tax incentive planning. The U.S. tax code includes a wide range of federal and state credits and deductions designed to support business growth, innovation, and sustainability. Yet, many companies still overlook these benefits due to limited visibility or perceived complexity.

Finance executives are uniquely positioned to change that.

By taking a proactive approach to tax strategy, rather than reacting during filing season, financial leaders can significantly improve liquidity, reallocate capital for growth, and reduce exposure to regulatory risk. In this article, we explore actionable strategies that finance professionals can use to identify and capture key incentives while navigating ongoing legislative changes.

Essential tax incentives to consider

R&D tax credits
Whether your company is developing software, enhancing manufacturing processes, or refining product designs, research and development activities can qualify for substantial credits. These credits can offset income tax—and in some cases, payroll tax—providing a direct boost to cash flow.

Cost segregation studies
Conducting a cost segregation study can accelerate depreciation deductions if your business owns commercial real estate. This approach enables organizations to free up capital in the early years of property ownership—cash that can be reinvested into operations or innovation.

Section 179D deduction for energy-efficient buildings
Companies making energy-efficient improvements to their commercial properties may be eligible for deductions up to $5.81 per square foot. As ESG reporting grows in importance, this incentive aligns well with sustainability goals and financial performance.

Section 45L energy-efficient home credit
Homebuilders and developers involved in energy-conscious residential construction can receive up to $5,000 per unit, adding significant value for those in the multifamily or green housing sectors.

Navigating tax shifts with strategic foresight

The tax landscape continues to evolve, bringing new opportunities alongside new expectations. Financial executives who stay alert to changing guidance can position their companies to take advantage of the most beneficial incentives as they emerge. Key areas to monitor include:

  • Documentation and Eligibility Requirements: The IRS continues to refine what it considers acceptable substantiation, especially for innovation-based credits. Strong recordkeeping and internal coordination are increasingly essential.
  • Emerging Policy Trends: Legislative momentum often centers on innovation, sustainability, and job creation. Monitoring policy proposals in these areas can help identify upcoming credits or expanded benefits.
  • Modernizing Finance Functions: From ESG incentives to workforce retention credits, tax opportunities are increasingly tied to strategic goals. Finance leaders who align tax planning with business priorities can unlock deeper value.

Your next move: Turn strategy into savings

1. Partner with a specialized tax consultant

While many firms offer general tax support, unlocking the full value of strategic incentives requires deeper, niche expertise. Look for a partner with in-house engineers, tax attorneys, and CPAs—not one that outsources to third parties. This multidisciplinary model ensures accuracy, compliance, and maximized benefits tailored to your operations.

2. Prioritize proven audit support

Given the IRS’s increasing scrutiny on credit claims, working with a consultant who stands behind their work is critical. If your incentive claims are ever audited, your advisor should be equipped—and willing—to confidently represent and defend the work. That kind of accountability matters.

3. Align incentives with broader business strategy

Tax credits shouldn’t sit in isolation. Whether your organization is focused on innovation, sustainability, real estate, or workforce expansion, integrating incentive planning into your financial strategy can free up capital and drive measurable impact.

Today’s finance leaders must think like strategists, not just stewards. Strategic tax incentive planning offers more than a reduction in liability—it’s a catalyst for growth, resilience, and long-term advantage. When aligned with business priorities, incentives can unlock capital, drive innovation, and enhance your competitive position.

But success hinges on choosing the right partner. Tax planning is complex, and not all advisors bring the same depth. At ABGi, we believe that maximizing what’s possible requires more than check-the-box compliance. With in-house engineers, attorneys, tax specialists, and audit support, we deliver tailored, transparent solutions and stand behind our work. For financial executives seeking to turn complexity into opportunity, strategic collaboration isn’t optional—it’s essential.