Which of the following is a tax incentive the CEO should request?

Sales and use tax exemptions are a significant tax incentive that a CEO could request because they directly reduce the cost of purchasing goods and services necessary for business operations. These exemptions can help lower operating expenses, allowing the company to allocate more resources toward growth and investment. Moreover, such incentives are often provided to encourage businesses to operate in a particular area, stimulate local economies, and create jobs.

Tax deductions for past losses, while beneficial to recover previously incurred losses, may not provide immediate financial relief compared to sales and use tax exemptions, which offer direct savings on current transactions. Reclassifying as a non-profit organization could involve significant changes to the company’s structure and operations, potentially limiting opportunities for profit generation. A reduction in federal taxes, while helpful, is a broader and less specific benefit than the direct savings offered by sales and use tax exemptions. Opting for targeted tax incentives like exemptions can often yield more immediate and tangible benefits for the company.