Uncovering Small Business Tax Credits: Save Money and Grow Your Business

💰Tax credits can significantly reduce a business's tax liability by offsetting tax payments dollar for dollar.

🔍Tax credits are provided by federal, state, and sometimes local governments to influence economic conditions and promote their political agenda.

🌟Opportunity zones offer tax credits to businesses located in designated areas to encourage investment and job creation.

🧪The research and development tax credit rewards businesses that engage in qualified research and development activities.

🤝The work opportunity tax credit provides incentives for hiring individuals from targeted groups that have faced barriers to employment.

What is the difference between tax deductions and tax credits?

—Tax deductions reduce taxable income, while tax credits directly reduce the tax liability owed.

Where can I find small business tax credits?

—You can find federal tax credits on the IRS's website, state tax credits on your state's economic development authority's website, and local tax credits by searching for your city's economic authority website.

What are opportunity zones?

—Opportunity zones are specific areas designated by the government to encourage investment and job creation. Businesses located in opportunity zones can benefit from tax credits.

How can I qualify for the research and development tax credit?

—Businesses that engage in qualified research and development activities can qualify for the research and development tax credit. Check the IRS's website for more information on what activities qualify.

Who are the targeted groups for the work opportunity tax credit?

—The work opportunity tax credit targets individuals from certain groups, such as veterans and ex-felons, who have faced barriers to employment.

00:00Tax credits can significantly reduce a business's tax liability by offsetting tax payments dollar for dollar.

02:22Opportunity zones offer tax credits to businesses located in designated areas to encourage investment and job creation.

06:00The research and development tax credit rewards businesses that engage in qualified research and development activities.

09:30The work opportunity tax credit provides incentives for hiring individuals from targeted groups that have faced barriers to employment.