J.K. Lasser's Small Business Taxes 2018

CHAPTER 23 Roundup of Tax Credits

1. Employment-Related Credits
2. Capital Construction–Related Credits
3. Other Tax Credits
4. General Business Credit

Alert

At the time this book was completed, Congress was considering important tax changes that could affect 2017 tax returns and planning for 2018. Check the online Supplement in February 2018 at www.jklasser.com or www.barbaraweltman.com to see what changes have been enacted and when they are effective.

Just as deductions offset business income, tax credits offset tax liability. In effect, tax credits are considerably more valuable than deductions since they offset taxes on a dollar-for-dollar basis.

Businesses may be entitled to a variety of credits that Congress created to encourage certain activities—hiring special workers, using alternative energy sources, pouring money into research, providing health coverage for your staff, and so on. Not every business credit applies to small business owners (but most of the business-related credits are listed within this chapter to alert you to their existence).

Many of these credits have been discussed throughout this book in the chapter to which they relate. However, here you will find a roundup of business tax credits, a brief explanation of what they are all about, and where you can find more information on them within this book (see Table 23.1, page 539). Some personal credits that have a business connection are explained in this chapter, but education tax credits are explained ...