- Introduction
- Topics and Useful Items
Alcohol fuels credit (Form 6478).
This credit applies to alcohol you sold or used as fuel. Alcohol,
for purposes of this credit, includes ethanol and methanol. It does
not include alcohol produced from petroleum, natural gas, coal, or
peat. Nor does it include alcohol of less than 150 proof. 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 social security 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.
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.
Empowerment zone employment credit (Form 8844).
You may qualify for this credit if you have employees and are
engaged in a business in an empowerment zone for which the credit is
available. For more information, see Form 8844 and Publication 954.
Enhanced oil recovery credit (Form 8830).
This credit applies to your qualified enhanced oil recovery costs
for the tax year. For more information, see Form 8830.
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 three credits.
- Energy credit.
- Reforestation credit.
- Rehabilitation credit.
Energy credit.
This credit applies to certain expenses for solar or geothermal
energy property you placed in service during the tax year. For more
information, see the instructions for Form 3468.
Reforestation credit.
The reforestation credit applies to part of the expenses you incur
each year to forest or reforest property you hold for growing trees
for sale or use in the commercial production of timber products. For
information about these expenses, see chapter 9 in Publication 535,
Business Expenses.
Rehabilitation credit.
This credit applies to expenses you incur to rehabilitate certain
buildings. For more information, see the instructions for Form 3468.
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.
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.
Renewable electricity production credit (Form 8835).
The renewable electricity production credit is available to sellers
of electricity. It is based on electricity that was sold to unrelated
persons and was produced from qualified energy resources at a
qualified facility during the 10-year period after the facility is
placed in service. For more information, see Form 8835.
Research credit (Form 6765).
The research credit is designed to encourage businesses to increase
the amounts they spend on research and experimental activities. The
credit is generally 20% of the amount by which your research expenses
for the year are more than your base amount. However, the credit does
not apply to expenses you pay or incur after June 30, 2004. For more
information, see Form 6765.
Welfare-to-work credit (Form 8861).
The welfare-to-work credit provides businesses with an incentive to
hire long-term family assistance recipients. However, the credit does
not apply to wages you pay or incur for qualified long-term family
assistance recipients who begin work for you after December 31, 2001.
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. However, the
credit does not apply to wages you pay or incur for qualified targeted
group members who begin work for you after December 31, 2001. For more
information, see Form 5884 and Publication 954.
- How To Claim the Credit
