Business Tax Credits

AAA

DEFINITION of 'Business Tax Credits'

A number of federal income tax credits available to businesses that are grouped together and can be claimed using IRS Form 3800. Business tax credits include the following credits: investment, work opportunity, welfare-to-work, alcohol fuels, research and experimentation, low-income housing, enhanced oil recovery and several other credits. These credits can be subtracted from tax.

INVESTOPEDIA EXPLAINS 'Business Tax Credits'

The credits must be claimed in the order prescribed in Form 3800, so that if the credit limit for the year is exceeded, the tax credits down the list can be carried forward or back. The total general business credit for the year consists of any carryforward of business credits from prior years plus the current year's business credits.

RELATED TERMS
  1. Alcohol Fuels Credit

    One of several general business credits included on the General ...
  2. General Business Tax Credit

    The total value of all the individual credits to be applied against ...
  3. Tax Credit

    An amount of money that a taxpayer is able to subtract from the ...
  4. Business

    1. An organization or enterprising entity engaged in commercial, ...
  5. Non-Refundable Tax Credit

    A tax credit that can't reduce the amount of tax owed to less ...
  6. Provisional Patent Application

    A short-term means of protecting an invention that requires less ...
Related Articles
  1. Budgeting

    Managing Income During Retirement

  2. Taxes

    IRA Contributions: Deductions and Tax ...

  3. Professionals

    How To Ask Your Employer To Fund Your ...

  4. Brokers

    Top Tax Deductions For Brokers

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center