Wonderful World of Business Tax Credits

The only people that don't love tax credits are the ones that don't qualify for them! Have you ever wanted a cheat sheet of IRS business tax credits? Well, the IRS has a great page with a list of business tax credits. Make sure to have an conversation with your accountant if you may qualify for a tax credit. As with all tax credits, they seem simple but in reality are very complex. Below is summary of the IRS page with the business tax credits. I have also included the link to the actual page.

Business Tax Credits

Your general business credit for the year consists of your carryforward of business credits from prior years plus the total of your current year business credits. In addition, your general business credit for the current year may be increased later by the carryback of business credits from later years. You subtract this credit directly from your tax.

All of the following credits, with the exception of the electric vehicle credit, are part of the general business credit. The form you use to figure each credit is shown below.

• Form 3800, General Business Credit (PDF)
• Form 3468, Investment Credit (PDF)
  This consists of the sum of the rehabilitation, energy, and reforestation credits.
• Form 5735, American Samoa Economic Development Credit (PDF)
• Form 5884, Work Opportunity Credit (PDF)
• Form 6478, Alcohol and Cellulosic Biofuel Fuels Credit (PDF)
• Form 6765, Credit for Increasing Research Activities (PDF)
• Form 8586, Low-Income Housing Credit (PDF)
• Form 8611, Recapture of Low-Income Housing Credit (PDF)
• Form 8820, Orphan Drug Credit (PDF)
• Form 8826, Disabled Access Credit (PDF)
• Form 8834, Qualified Plug-in Electric and Electric Vehicle Credit (PDF)
• Form 8835, Renewable Electricity, Refined Coal, and Indian Coal Production Credit (PDF)
• Form 8844, Empowerment Zone and Renewal Community Employment Credit (PDF)
• Form 8845, Indian Employment Credit (PDF)
• Form 8846, Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips (PDF)
• Form 8847, Credit for Contributions to Selected Community Development Corporations (PDF)
• Form 8864, Biodiesel and Renewable Diesel Fuels Credit (PDF)
• Form 8874, New Markets Credit (PDF)
• Form 8881, Credit for Small Employer Pension Plan Startup Costs (PDF)
• Form 8882, Credit for Employer-Provided Childcare Facilities and Services (PDF)
• Form 8896, Low Sulfur Diesel Fuel Production Credit (PDF)
• Form 8900, Qualified Railroad Track Maintenance Credit (PDF)
• Form 8906, Distilled Spirits Credit (PDF)
• Form 8908, Energy Efficient Home Credit (PDF)
• Form 8910, Alternative Motor Vehicle Credit (PDF)
• Form 8911, Alternative Fuel Vehicle Refueling Property Credit (PDF)
• Form 8923, Mine Rescue Team Training Credit (PDF)

How to Claim the Credit

To claim a general business credit, you will first have to get the forms you need to claim your current year business credits.

In addition to the credit form, in most cases you may also need to file Form 3800.

If you file a Form 1040 Schedule C, you may be eligible to claim the Earned Income Tax Credit (EITC). To learn more about EITC, refer to It’s easier than ever to find out if you qualify for EITC, or use the EITC Assistant to find out if you are eligible.

SOURCE: https://www.irs.gov/businesses/small-businesses-self-employed/business-tax-credits

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