The General Business Credit is designed to encourage certain business activities by providing a credit against taxes owed. It comprises several different credits that are combined into one total credit on Form 3800. These credits typically relate to activities such as research and development, renewable energy production, low-income housing investments, and other specified activities that benefit the economy or environment.
Who is eligible to claim the General Business Credit?
Is the General Business Credit refundable or nonrefundable?
The General Business Credit is typically a nonrefundable credit. This means that while it can reduce your tax liability, any excess credit cannot be refunded to you. However, there are certain circumstances where specific components of the General Business Credit can be carried back or carried forward to other tax years, which may result in a refund or reduction of future tax liabilities.
Where do I claim the credit?
- Federal
- Deductions - Select my forms
- Credits
- Less Common Credits
- General Business Credit