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taxmap/pubs/p334-012.htm#TXMP22cd568b Chapter 4 General Business Credits

General Business Credit

Introduction

Your general business credit for the year consists of your carryforward of business credits from prior years plus the total of your current year business credits. In addition, your general business credit for the current year may be increased later by the carryback of business credits from later years. You subtract this credit directly from your tax.

Useful items

You may want to see:

See chapter 12 for information about getting publications and forms.

taxmap/pubs/p334-012.htm#TXMP1c409b23 Business Credits

General Business Credit

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, in most cases, you will also have to complete Form 3800.

taxmap/pubs/p334-012.htm#TXMP2998e760 Alternative fuel vehicle refueling property credit (Form 8911).

This credit applies to the cost of any qualified fuel vehicle refueling property you placed in service. For more information, see Form 8911.

taxmap/pubs/p334-012.htm#TXMP2f575304 Alternative motor vehicle credit (Form 8910).

This credit consists of the following four credits for new vehicles you placed in service. For more information, see Form 8910.

• Qualified fuel cell motor vehicle credit.
• Advanced lean burn technology motor vehicle credit.
• Qualified hybrid motor vehicle credit.
• Qualified alternative fuel motor vehicle credit.

taxmap/pubs/p334-012.htm#TXMP302518f2 Biodiesel and renewable diesel fuels credit (Form 8864)

This credit applies to certain fuel sold or used in your business. For more information, see Form 8864.

taxmap/pubs/p334-012.htm#TXMP670f2abe Credit for alcohol used as fuel (Form 6478).

This credit consists of the alcohol mixture credit, alcohol credit, and small ethanol producer credit. For more information, see Form 6478.

taxmap/pubs/p334-012.htm#TXMP55939dba 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.

taxmap/pubs/p334-012.htm#TXMP790bc620 Credit for employee social security and Medicare taxes paid on certain employee tips (Form 8846).

This 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.

taxmap/pubs/p334-012.htm#TXMP1659ee36 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. For more information, see Form 8882.

taxmap/pubs/p334-012.htm#TXMP3e32b420 Credits for employers affected by Hurricane Katrina, Rita, or Wilma (Form 5884-A).

A qualified employer can claim the Hurricane Katrina housing credit for qualified lodging provided between January 1, 2006, through July 1, 2006. The employee retention credit expired on December 31, 2005. For more information, see Form 5884-A.

taxmap/pubs/p334-012.htm#TXMP0ccc95a9 Credit for increasing research activities (Form 6765).

This credit is designed to encourage businesses to increase the amounts they spend on research and experimental activities, including energy research. For more information, see Form 6765.

taxmap/pubs/p334-012.htm#TXMP0a18402b Credit for small employer pension plan startup costs (Form 8881).

This credit applies to pension plan startup costs of a new qualified defined benefit or defined contribution plan (including a 401(k) plan), SIMPLE plan, or simplified employee pension. For more information, see Publication 560, Retirement Plans for Small Business (SEP, Simple, and Qualified Plans).

taxmap/pubs/p334-012.htm#TXMP51b613c0 Disabled access credit (Form 8826).

This 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.

taxmap/pubs/p334-012.htm#TXMP127f2d4d Distilled spirits credit (Form 8906).

This credit is available to distillers and importers of distilled spirits and eligible wholesalers of distilled spirits. For more information, see Form 8906.

taxmap/pubs/p334-012.htm#TXMP1eacf001 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.

taxmap/pubs/p334-012.htm#TXMP231197ff Energy efficient appliance credit (Form 8909).

This credit is available for each type of qualified energy efficient appliance produced by the taxpayer in a tax year ending on or after December 31, 2006. For more information, see Form 8909.

taxmap/pubs/p334-012.htm#TXMP4b2dcbf6 Energy efficient home credit (Form 8908).

This credit is available for eligible contractors of certain homes sold for use as a residence. For more information, see Form 8908.

taxmap/pubs/p334-012.htm#TXMP60cf5a2c Enhanced oil recovery credit (Form 8830).

This credit applies to your qualified enhanced oil recovery costs. The 2006 Form 8830 will not be issued since the credit is completely phased out for tax years beginning in 2006 due to the increased applicable reference price of crude oil.

taxmap/pubs/p334-012.htm#TXMP45ebc82f Indian employment credit (Form 8845).

This credit applies to qualified wages and health insurance costs you paid or incurred for qualified employees. For more information, see Form 8845 and Publication 954.

taxmap/pubs/p334-012.htm#TXMP32df3185 Investment credit (Form 3468).

The investment credit is the total of the following credits. For more information, see Form 3468.

• Rehabilitation credit.
• Energy credit.
• Qualifying advanced coal project credit.
• Qualifying gasification project credit.

taxmap/pubs/p334-012.htm#TXMP2f75c1af Low sulfur diesel fuel production credit (Form 8896).

This credit is for the production of low sulfur diesel by a qualified small business. For more information, see Form 8896.

taxmap/pubs/p334-012.htm#TXMP1e8814a9 Low-income housing credit (Form 8586).

This credit generally applies to each new qualified low-income building placed in service after 1986. For more information, see Form 8586.

taxmap/pubs/p334-012.htm#TXMP022faec8 Mine rescue team training credit.

This credit applies to training program costs you pay or incur for certain mine rescue team employees. For more information, see Publication 553.

taxmap/pubs/p334-012.htm#TXMP6dbdaa69 New markets credit (Form 8874).

This credit is for qualified equity investments made in qualified community development entities. For more information, see Form 8874.

taxmap/pubs/p334-012.htm#TXMP7a09a7e8 Nonconventional source fuel credit (Form 8907).

This credit is for gas produced from biomass; liquid, gaseous, or solid synthetic fuels produced from coal; and coke or coke gas. For more information, see Form 8907.

taxmap/pubs/p334-012.htm#TXMP7c94c0a4 Orphan drug credit (Form 8820).

This 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.

taxmap/pubs/p334-012.htm#TXMP145b519a Qualified railroad track maintenance credit (Form 8900).

Certain regional and switching railroads may be able to claim a credit for expenses made to upgrade their railroad tracks (including roadbed, bridges, and related track structures). For more information, see Form 8900.

taxmap/pubs/p334-012.htm#TXMP3bb70905 Renewable electricity, refined coal, and Indian coal production credit (Form 8835).

This credit is for the sale of electricity, refined coal, or Indian coal produced in the United States or U. S. possessions from qualified energy resources at a qualified facility. For more information, see Form 8835.

taxmap/pubs/p334-012.htm#TXMP3a344c54 Welfare-to-work credit (Form 8861).

This credit provides businesses with an incentive to hire long-term family assistance recipients. For more information, see Form 8861 and Publication 954.

taxmap/pubs/p334-012.htm#TXMP0f31b461 Work opportunity credit (Form 5884).

This 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.

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