J.K. Lasser's Small Business Taxes 2013: Your Complete Guide to a Better Bottom Line

CHAPTER 23

Roundup of Tax Credits

Alert

At the time this book was printed, Congress had not extended numerous breaks for 2012 that had expired at the end of 2011. Check the online supplement in February 2013 at www.jklasser.com or www.barbaraweltman.com to see whether these breaks apply for 2012 returns.

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, and so on. Not every business credit applies to small business owners (but all 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 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 492).

In this chapter you will learn about:

• Employment-related credits
• Capital construction-related credits
• Other tax credits
• Where to claim tax credits