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. Non-Refundable Tax Credit

    A tax credit that can't reduce the amount of tax owed to less ...
  5. Business

    1. An organization or enterprising entity engaged in commercial, ...
  6. Donation-based Crowd Funding

    Donation-based crowdfunding is a way to source money for a project ...
Related Articles
  1. Budgeting

    Managing Income During Retirement

    Learn some sensible strategies for making your hard-earned savings last for as long as you need them.
  2. Taxes

    IRA Contributions: Deductions and Tax Credits

    We outline the incentives and help you take full advantage of the benefits.
  3. Professionals

    How To Ask Your Employer To Fund Your Education

    If you can get your education paid for by your company it is a win-win for both parties.
  4. Brokers

    Top Tax Deductions For Brokers

    If you are paying out of pocket, you can make your business expenses work for you at tax time.
  5. Taxes

    Give Your Taxes Some Credit

    A few tax credits can greatly increase the amount of money you get back on your return.
  6. Entrepreneurship

    Best Books For Entrepeneurs

    Entrepreneurs wear many hats. Here are books that will help you find and manage talent, provide ultimate customer service, drive up sales, and much more.
  7. Professionals

    What does C-Suite Mean?

    C-Suite is a slang term used to describe the highest level senior executives of a corporation. This is the decision-making, power center of a company. These individuals are usually paid well, ...
  8. Entrepreneurship

    Go To College Or Become An Entrepreneur?

    The rising cost of higher education and high unemployment rate following the Great Recession has caused many young people to question the value of college.
  9. Entrepreneurship

    Best Checking Accounts For Small Businesses

    What you need to know to choose the best checking account for your small business โ€“ and where to look.
  10. Taxes

    Which Is Better? Tax Preparer Or Tax Software

    Every taxpayer โ€“ and every year โ€“ is different, so here are four factors to help you decide whether a tax pro or software is best for you.

You May Also Like

Hot Definitions
  1. Fixed-Charge Coverage Ratio

    A ratio that indicates a firm's ability to satisfy fixed financing expenses, such as interest and leases. It is calculated ...
  2. Efficiency Ratio

    Ratios that are typically used to analyze how well a company uses its assets and liabilities internally. Efficiency Ratios ...
  3. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  4. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  5. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  6. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
Trading Center