Social Media Ventures Get Tax Breaks In 21 States And Canada

Tax breaks for social media will be available in 21 U.S. states and all of Canada within a couple years.

If you’ve got an idea for a social media application and a case of wanderlust, this news is for you: 21 different states in the U.S. will have incentive programs for developers in place within the couple of years.

The law firm Pillsbury Winthrop Shaw Pittman LLP has drafted a comparison of the different opportunities available in the U.S. and also Canada. That country already has nationwide incentives, plus additional ones exist within six Canadian provinces.

Incentives in this context usually means tax breaks, and the exact savings vary from one locale to the next. A lot of these opportunities simply extend to techies the same types of tax breaks that are offered to film companies — including some that are offered on a project basis.

Some of the incentives amount to discounts of up to 35 percent on taxes, with savings for both companies and their employees. You can even score these savings if haven’t officially formed a company yet, at least in some locales.

Often enough, the best deals are in places that you might not otherwise want to move to. So you’ll want to draw up lists of pros and cons about each of the possible locations you’re considering.

When run the numbers on potential tax savings, don’t forget to factor in the cost of not getting to do something you want or enjoy, which economists call opportunity costs. These can gain importance when you’re ready to recruit some help to move with you.People consider things like quality of life when deciding whether to relocate.

Would a set of tax incentives for social media create enough motivation for you to relocate to another state or even across the U.S.-Canada border?