Business owners are always looking for ways to save money. One such strategy is to consider the many ways to lessen your tax liability.
Through the use of business tax credits, you may be in position to pay less in taxes, thus leaving more money for your company to use as it best sees fit.
The IRS offers a variety of business tax credits. You may qualify for one, some, or none at all. This is why you need a highly qualified, knowledgeable, and experienced accountant working on your behalf. This could be the difference between taking advantage of a business tax credit and missing out on one that could save you money.
Claiming a Credit
In order to claim a business tax credit, the IRS requires that you complete and submit the appropriate form. For example, Form 3800 is used for the General Business Credit.
Other available credits noted by the IRS include but are not limited to:
Form 3468, Investment Credit
Form 5884, Work Opportunity Credit
Form 6765, Credit for Increasing Research Activities
Form 8826, Disabled Access Credit
Form 8834, Qualified Plug-in Electric and Electric Vehicle Credit
Form 8847, Credit for Contributions to Selected Community Development Corporations
Form 8910, Alternative Motor Vehicle Credit
Form 8923, Mine Rescue Team Training Credit
As you can see, business tax credits span a variety of circumstances and industries.
As a business owner, your goal is simple:
Learn more about available business tax credits.
Speak with your accountant regarding your eligibility.
Determine how to calculate the credit.
Realize the tax savings.
By Matthew Shiebler, CPA