Charlie . 29th Jan, 2025 3:01 PM
7 Tax Credits for Your Small Business
5. New Clean Vehicle Credit
This tax credit applies to plug-in electric vehicles (EV) or fuel cell vehicles (FCV). You could receive a credit of up to $7,500 for either of these types of cars. The Inflation Reduction Act of 2022 changed the rules for this credit for vehicles purchased from 2023 to 2032.
To qualify, the vehicle must be for your own use and not for resale and must be used in the United States. Further, your modified adjusted gross income (AGI) may not exceed $150,000. The type of vehicle the credit applies to can be found on the IRS website. (Note: battery and vehicle weight specifics and other qualifying criteria exist.)
To claim the credit, file Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit (Including Qualified Two-Wheeled Plug-in Electric Vehicles), with your tax return. You will need to provide your vehicle's VIN.
6. Disabled Access Credit
You might be eligible for this credit if you spent money making your business more accessible to people with disabilities. To determine the official IRS definition of "accessible" which is broad, consult the instructions for IRS Form 8826. That is where you will find qualifying expenses.
The credit covers 50 percent of expenses up to $10,250 after the first $250. The maximum tax credit is $5,000. To claim this credit, use IRS Form 8826, Disabled Access Credit.
7. Work Opportunity Tax Credit (WOTC)
This credit is targeted at employers who hire individuals from specific groups, including (but not limited to):
The WOTC is a one-time tax credit for newly hired individuals. To claim this credit, fill out IRS Form 8850, Pre-screening Notice, and Certification Request.
Of course, you can discuss these and many other tax credits that may benefit your small business with your qualified accountant or CPA.
Data Source pdshcpas.com
