The 'Tax Credits' That May Apply

Tax credits are more valuable than deductions—they reduce your tax liability dollar-for-dollar rather than just reducing taxable income. Knowing which credits you qualify for can significantly lower your tax bill.

Business Tax Credits

Research & Development Credit: Businesses engaged in qualifying research activities can claim credits worth 6-8% of qualified research expenditures.

Work Opportunity Credit: Credits for hiring individuals from targeted groups facing employment barriers.

Small Employer Health Insurance Credit: Up to 50% of premium costs for small businesses providing coverage through SHOP.

Disabled Access Credit: Small businesses can claim credits for accessibility improvements.

Individual Tax Credits

Child Tax Credit: Up to $2,000 per qualifying child under 17.

Earned Income Tax Credit: Refundable credit for lower and middle-income workers.

Education Credits: American Opportunity Credit (up to $2,500) and Lifetime Learning Credit (up to $2,000) for qualified education expenses.

Retirement Savings Credit: Up to $1,000 credit for lower-income individuals contributing to retirement accounts.

Energy Credits

Residential Clean Energy Credit: 30% credit for solar, wind, and geothermal installations.

Energy Efficient Home Improvement Credit: Up to $3,200 annually for qualifying efficiency improvements.

Clean Vehicle Credit: Up to $7,500 for new electric vehicles meeting requirements.

Maximizing Credits

Some credits are non-refundable (limited to your tax liability), while others are refundable (paid even if you owe no tax). Planning to maximize refundable credits provides the greatest benefit. Your CPA can help identify credits you may be missing.