All of the following credits are part of the general business credit. The form you use to figure each credit is shown in parentheses. Be sure you also read How To Claim the Credit, because you may also have to fill out Form 3800 in certain situations.
Alternative fuel vehicle refueling property credit (Form 8911).
This credit applies to the cost of any qualified fuel vehicle refueling property placed
in service after December 31, 2005, for tax years ending after that date. For more
information, see Form 8911.
Alternative motor vehicle credit (Form 8910).
This credit consists of the following four credits for new vehicles placed in service
after December 31, 2005, for tax years ending after that date. For more information, see Form 8910.
Qualified fuel cell motor vehicle credit.
Advanced lean burn technology motor vehicle credit.
Qualified hybrid motor vehicle credit.
Qualified alternative fuel motor vehicle credit.
Biodiesel and renewable diesel fuels credit (Form 8864)
This credit applies to certain fuel sold or used in your business. For more
information, see Form 8864.
Credit for alcohol used as a fuel (Form 6478).
This credit applies to alcohol sold or used as a fuel. Alcohol, for purposes of this
credit, includes ethanol and methanol. It does not include alcohol produced from
petroleum, natural gas, coal, or peat. For more information, see Form 6478.
Credit for contributions to selected community development corporations (Form 8847).
This credit applies to certain contributions made to a selected community development
corporation before June 30, 1999. For more information, see Form 8847.
Credit for employee social security and Medicare taxes paid on certain
employee tips (Form 8846).
The credit is generally equal to your (employer's) portion of social security and
Medicare taxes paid on tips received by employees of your food and beverage establishment
where tipping is customary. The credit applies regardless of whether the food is consumed
on or off your business premises. However, you cannot get credit for your part of
social security and Medicare taxes on those tips that are used to meet the federal
minimum wage rate that applies to the employee under the Fair Labor Standards Act.
For more information, see Form 8846.
Credit for employer-provided childcare facilities and services (Form 8882).
This credit applies to the qualified expenses you paid for employee childcare and
qualified expenses you paid for childcare resource and referral services. The credit
is 25% of qualified expenses you paid for employee childcare and 10% of qualified
expenses you paid for childcare resource and referral services. This credit is
limited to $150,000 each year. For more information, see Form 8882.
Credit for increasing research activities (Form 6765).
The research credit is designed to encourage businesses to increase the amounts they
spend on research and experimental activities, including energy research. The
credit is generally 20% of the amount by which your research expenses for the year
are more than your base amount. For more information, see Form 6765.
Credit for small employer pension startup costs (Form 8881).
This credit applies to pension plan startup costs. If you begin a new qualified
defined benefit or defined contribution plan (including a 401(k) plan), SIMPLE plan,
or simplified employee pension, you can receive a tax credit of 50% of the first $1,000
of qualified startup costs. For more information, see Publication 560,
Retirement Plans for Small Business (SEP, Simple, and Qualified Plans).
Disabled access credit (Form 8826).
The disabled access credit is a nonrefundable tax credit for an eligible small
business that pays or incurs expenses to provide access to persons who have
disabilities. You must pay or incur the expenses to enable your business to comply
with the Americans with Disabilities Act of 1990. For more information, see Form 8826.
Distilled spirits credit (Form 8906).
This credit is available to distillers and importers of distilled spirits and eligible
wholesalers of distilled spirits for tax years beginning after September 30, 2005.
For more information, see Form 8906.
Empowerment zone and renewal community employment credit (Form 8844).
You may qualify for this credit if you have employees and are engaged in a business
in an empowerment zone or renewal community for which the credit is available. For
more information, see Form 8844 and Publication 954.
Energy efficient appliance credit (Form 8909).
This credit is available for each type of qualified energy efficient appliance
produced by the taxpayer after December 31, 2005, in a tax year ending on or
after December 31, 2006. For more information, see Form 8909.
Energy efficient home credit (Form 8908).
This credit is available for eligible contractors of certain homes sold for use as a
residence after December 31, 2005. For more information, see Form 8908.
Enhanced oil recovery credit (Form 8830).
This credit applies to your qualified enhanced oil recovery costs. For more
information, see Form 8830.
Hurricane Katrina employee retention credit (Form 5884-A).
This credit provides certain employers with an incentive to continue to pay certain
wages after August 28, 2005, and before January 1, 2006. For more information, see Form 5884-A.
Indian employment credit (Form 8845).
This credit applies to the part of the qualified wages and health insurance costs
(up to $20,000 per employee) you paid or incurred during a tax year that is more
than the sum of the comparable costs you (or your predecessor) paid or incurred
during calendar year 1993. The employee must be an enrolled member, or the spouse
of an enrolled member, of an Indian tribe. The employee must perform substantially all
of his or her services within an Indian reservation while living on or near the
reservation. For more information, see Form 8845 and Publication 954.
Investment credit (Form 3468).
The investment credit is the total of the following credits. For more information, see Form 3468.
Rehabilitation credit.
Energy credit for periods ending before January 1, 2006.
Energy credit for periods ending after December 31, 2005.
Qualifying advanced coal project credit for periods ending after August 8, 2005.
Qualifying gasification project credit for periods ending after August 8, 2005.
Low sulfur diesel fuel production credit (Form 8896).
This credit applies to expenses paid or incurred after December 31, 2002, in tax years
ending after such date. For more information, see Form 8896.
Low-income housing credit (Form 8586).
This credit generally applies to qualified low-income housing buildings placed in
service after 1986. For more information, see Form 8586.
New markets credit (Form 8874).
This credit is for qualified equity investments made in qualified community development
entities. For more information, see Form 8874.
Nonconventional source fuel credit (Form 8907).
For tax years ending after December 31, 2005, this credit will be treated as a
general business credit. For more information, see Form 8907.
Orphan drug credit (Form 8820).
The orphan drug credit applies to qualified expenses incurred in testing certain
drugs, known as - "orphan drugs for rare diseases and conditions."
For more information, see Form 8820.
Qualified railroad track maintenance credit (Form 8900).
Certain regional and switching railroads may be able to claim a credit for expenses
made to upgrade their railroad tracks (including roadbed, bridges, and related
track structures). For more information, see Form 8900.
Renewable electricity, refined coal, and Indian coal production credit (Form 8835).
For more information on the renewable electricity, refined coal, and Indian coal production
credit, see Form 8835.
Welfare-to-work credit (Form 8861).
The welfare-to-work credit provides businesses with an incentive to hire long-term
family assistance recipients. For more information, see Form 8861 and Publication 954.
Work opportunity credit (Form 5884).
The work opportunity credit provides businesses with an incentive to hire individuals
from targeted groups that have a particularly high unemployment rate or other special
employment needs. For more information, see Form 5884 and Publication 954.
Information courtesy of the Internal Revenue Service.
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