See chapter 12 for information about getting publications and forms.
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, later, because you may also have to fill out Form 3800 in certain situations.
Biodiesel fuels credit (Form 8864)
This credit applies to fuel produced, sold or used after December 31, 2004, in taxable years ending after such date.
For more information, see Form
8864.
Credit for alcohol used as a fuel (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. 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. 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.
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.
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.
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. This credit has been repealed for expenses paid or incurred after October
22, 2004. 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 sulfur diesel fuel production credit (Form 8896).
This credit applies to expenses paid or incurred after December 31, 2002, in taxable 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 York Liberty Zone business employee credit (Form 8884).
This credit provides businesses with an incentive to hire individuals from a new targeted group of employees in the
Liberty Zone. This credit
expired for wages paid or incurred for work performed after December 31, 2003. For more information, see Form 8884.
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 and refined coal production credit (Form 8835).
For more information on the renewable electricity and refined 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.
To claim a general business credit, you will first have to get the forms you need to claim your current year business credits.
In addition to the credit form, you may also need to file Form 3800. See the next discussion to decide whether you need to
file Form 3800.
You must file Form 3800 if any of the following apply.
-
You have more than one of the credits listed above (other than the empowerment zone and renewal community employment credit
(Form 8844), New
York Liberty Zone business employee credit (Form 8884), or renewable electricity and refined coal production credit (Form
8835, Section
B)).
-
You have a carryback or carryforward of any of these credits (other than from Form 8844, Form 8884, or Section B of Form 8835).
-
Any of these credits (other than the amount from Form 8586, Form 8844, Form 8884, or Section B of Form 8835) is from a passive
activity. For
information about passive activity credits, see Form 8582-CR.
Claiming the empowerment zone and renewal community employment credit.
The empowerment zone and renewal community employment credit is subject to different rules. The credit is figured
separately on Form 8844 and is
not carried to Form 3800. For more information, see the instructions for Form 8844.
Claiming the New York Liberty Zone business employee credit.
The New York Liberty Zone business employee credit is subject to different rules. The credit is figured separately
on Form 8884 and is not carried
to Form 3800. For more information, see the instructions for Form 8884.
Claiming the renewable electricity and refined coal production credit.
The part of the credit figured in Section B of Form 8835 is subject to different rules. The amount figured in Section
B is not carried to Form
3800. For more information, see Form 8835.
Alternative minimum tax (AMT).
Although you may not owe AMT, you must still figure your tentative minimum tax on Form 6251 if you claim a general
business credit. After you fill
in Form 6251, attach it to your tax return.
