The IRS offers twenty-nine tax credits that you or your
business might be able to claim. Claiming
a credit can actually save you more tax dollars than taking a deduction.
Credit for Alcohol Used
as Fuel: This
credit gives you money back for selling or using alcohol, or alcohol mixtures,
for fuel.
Credit for Increasing
Research Activities: This
credit offers money back for wages and costs associated with conducting
research.
Disabled Access Credit:
If
your business spent money providing handicap access to your business, then you
may be eligible for up to a $5,000 credit.
Qualified Electric
Vehicle Credit:
You may claim up to $1,000 per
electric vehicle.
Credit for Employer
Social Security and Medicare Taxes Paid on Certain Employee Tips:
Credit
is given on Social Security and Medicare contributions on employee wage tips
above minimum wage.
Biodiesel and Renewable
Diesel Fuels Credit: You
may be able to get credits for using any of a variety of types of diesel fuels.
Credit for Small
Employer Pension Plan Startup Costs:
Your business may receive credit
for some of the fees associated with starting pension plans for one or more of
your employees.
Credit for
Employer-Provided Childcare Facilities and Services:
If
your business provides childcare for employees, your business may qualify for a
credit up to $150,000.
Energy Efficient Home
Credit: Contractors who sold energy-efficient homes, may qualify for
a credit of up to $2,000 for each home that was sold.
Alternative Motor
Vehicle Credit:
Credit may be taken if your business owns and uses hybrid
vehicles, natural gas powered vehicles, and other types of “alternative”
vehicles.
Work Opportunity Credit:
Your
business may be eligible for credits if you hired employees from specific
groups, such as high-risk youth, certain veterans, qualified ex-felons, and
certain food stamp recipients.
It’s of value to keep in mind that some of the credits
listed above can be claimed up to three years after your business initially
qualified for the credit. Also,
some credits can be partially claimed one year, and partially claimed another
year.
“Tax Tips” are the opinions of Executive Accounting Solutions, which is not a substitute for individual accounting, tax, and professional services since individual situations vary.