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Hello from Hito. We hope everyone is ready for the summer and, as always, we are here to help with turning your tax benefits into resources for your business. Thanks for being here.


Hi Guest,

As always there are a few subjects we want to highlight  but first we’d like to take a moment and welcome two new members of the Hito team. 


Alexis Schnitzer is a tax analyst with more than 10 years of experience working for top companies such as IBM, HP and Accenture. He graduated from the University of Buenos Aires with a BA in Business Administration and a MA in Finance degree from the Catholic University of Argentina. He is also bilingual in English and Spanish. Hito is here to hello your company unlock its potential and we could not be happier to have him.


Camila Obredor is a tax analyst with a year’s experience working for PwC leading Tax team. She is currently finishing Law School at Catholic University of Argentina. Camila is bilingual in English and Spanish and is thrilled to join the team. We are thrilled to have her as well.


The tax issues we’ve been keeping an eye on in the past few months are varied and this is not, of course, an exhaustive list.

The High-Road Cannabis Tax Credit (HRCTC)

Cannabis is subject to numerous taxes which, in some places, is causing an exodus from the business. California is making an effort to staunch the bleeding. The state is offering the HRCTC to qualified businesses to keep people in the business and stabilize tax revenue. Taxpayers MUST make a tentative credit reservation, and these are given on a first come, first served basis.

The credit is for up to 25% of qualified expenditures (up to a maximum of $250,000). Obviously, this is a substantial break. But there are requirements. The first of which is making a tentative credit reservation. And making this soon is important as there is a limit on the total amount of this credit ($20 million). 

To qualify a business must be a commercial cannabis business with a retail or micro-business license. These businesses also must provide full time employees with wages, group health insurance and retirement benefits/pension benefits (including stock options with the employer paying full value of the stock). The taxpayer must be exempt from requirements of the CalSavers Retirement Savings Program. 

Expenses that qualify for the credit include wages for full-time employees, safety-related training, equipment and services and workforce development and safety training for employees. Remember that you MUST make a tentative credit reservation, and these are given on a first come, first served basis.

ERC Disruption For Service Companies 

As we continue to see happy clients inform us about receiving refund checks, we want to mention some misconceptions about the ERC that may be an opportunity. We are seeing the following opportunities:

  • Misconception: Obtaining a PPP loan precludes receiving ERC - Incorrect. Companies can claim both PPP loans and ERC.

  • Misconception: The lifting or lack of COVID orders in my location means I cannot claim ERC - This is not true. Companies are entitled to the ERC if government orders anywhere in the US cause material disruption to one’s business. Typically, we see supply chain issues caused from vendors delivering late.

  • Misconception: Disruption from supply chain issues only is eligible if the delay is due to my products being stuck at a port - Not true. Supply chain issues can be caused by both foreign and US vendors delivering late or not at all. Not only were US ports backed up due to covid restrictions, but so were US trucking companies. In our experience almost everyone was affected.

  • Misconception: Supply chain disruption only applies to companies that sell products. - False. Companies that perform services can also have supply chain issues. Sometimes it’s a law firm that has their court dates delayed due to government shutdowns. Sometimes it’s a broker who doesn’t get paid for her service until the product is received by the customer. Sometimes it’s a real estate agent who has trouble selling houses. Sometimes it’s a laundromat who can’t get the parts to fix the washing machines, or the auto repair shop that can’t get the parts to fix the cars. 

At Hito, we stand behind our work, our usual engagements provide free tax audit defense

Arizona Tax Breaks For Quality Jobs, Quality Facilities and Computer Data Centers

U.S. states are competing for jobs. This isn’t new or news. But the plethora of tax breaks available to businesses bringing valuable assets and infrastructure with them is growing. All jobs have value but some jobs obviously have more value and jobs that come with a company headquarters or manufacturing hub are even more valuable.  States have also begun incentivizing investment in their own business infrastructure. 

Arizona offers benefits to companies that bring quality jobs, computer data centers and other qualified facilities to the state. There are a number of tax incentives offered to companies in Arizona. We would be happy to chat with you about how these credits might apply to your business. .


As always, we are here to help with these and any other questions you may have about your business tax plan. If you need help with Federal taxes or state taxes for your small to medium sized business, Hito is just a call or a click away.


All the Best,

The Hito Team 
Phone: 949-876-8420 ext 200 | Fax: 714-844-4874
Email: Michelle Morgan
  Jennifer Maes
Website: Hito, LLC