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What are Business Tax Credits?

Business Tax Credits are a group of credits available to business owners. Business Tax Credits include:

  • Investments
  • Work opportunities
  • Welfare-to-work
  • Employer provided day care services
  • Research and experimentation
  • Low-income housing
  • Enhanced oil recovery
  • Health insurance premiums

These tax credits are grouped together and submitted through IRS Form 3800.

The IRS limits how many credits you can claim each year. The limit is calculated by your tax liability. You can use IRS form 6251 to find out how many credits you can claim each year. If you go over your credit amount then the credits will be held and you can use them the following year.

Business Tax Credits Scenario

Dr. Jared Andrews is a general practitioner, who owns his own family practice. Dr. Andrews has 15 employees. He provides health insurance and day care services for his employees. He also has multiple business investments.

Because Dr. Andrews has multiple items that qualify for the business tax credit he will combine them on IRS form 3800.

Dr. Andrews takes advantage of business tax credits by filing the health insurance premiums, day care services and his investments. Because he claims more than one of the credits he files IRS form 3800.

Claiming these business tax credits allows Dr. Andrews to save money by paying less taxes. He can then spend that money on building his business.


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