Preparing Your Tax Return(s) and Information Returns

Business Credit

General Business Credit

Your general business credit for the year consists of your carry-forward 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 carry-back of business credits from later years. You subtract this credit directly from your tax. All of the following credits are part of the general business credit. See Publication 553 for current year to year changes.

• Alcohol fuels credit
• Credit for contributions to selected community development corporations
• Credit for taxes paid on certain employee tips
• Disabled access credit
• Empowerment zone employment credit
• Enhanced oil recovery credit
• Indian employment credit
• Investment credit - The investment credit is the sum of the following three credits.
  • Energy credit
  • Reforestation credit
  • Rehabilitation credit
• Low-income housing credit
• Orphan drug credit
• Renewable electricity production credit
• Research credit
• Welfare-to-work credit
• Work opportunity credit
• How to Claim the Credit
• Form 3800, General Business Credit.

Caution: Although the empowerment zone employment credit (Form 8844) is part of the general business credit, never report it on Form 3800.

 

Important References:

Publication 334    Tax Guide for Small Business
Publication 553     Highlights of the Tax Law Changes