Why Businesses Work with MWBEs

Why might other companies seek out MWBEs to work with? The first reason has to do with the bottom line: they can gain substantial tax savings.

On the federal level, companies can get tax breaks for using minority and women-owned businesses in procuring materials and supplies. There’s also a federal tax incentive that reduces tax liabilities for companies using minorities that supply labor or services to a project funded with federal or state grants or loans. On the state level, some states also offer additional tax breaks of their own.

Another reason is more philosophical. Companies may simply want to pursue diversity among their supplier and customer network. Depending on a business’s objectives, seeking out MWBEs to partner with can help reinforce their mission and values.

Quoted from https://justworks.com/blog/mwbe-certificate-intro-what-why-how

The Benefits of Working with a Minority Business Enterprise

Besides the economic benefits, there are several intangible benefits to working with a MBE. A MBE can offer more adaptability, flexibility and balance in comparison to non-MBE suppliers. MBE suppliers can offer cost saving strategies due to diversity spend requirements and taking advantage of numerous federal and state tax incentives, tax breaks and potential rebates. Partnering with an MBE can also strengthen your brand recognition, community outreach, company culture and marketing efforts.

Quoted from https://www.zempleo.com/2017/05/10/benefits-working-minority-business-enterprise/

ASK YOUR CPA OR OTHER TAX PROFESSIONAL FOR GUIDANCE ON HOW TO TAKE ADVANTAGE OF THE TAX INCENTIVES AVAILABLE FOR DOING BUSINESS WITH AN MWBE.