Written by Marc R Barnes EA
January 19, 2010
Business owners are eligible for a variety of tax credits. Here are a few credits you may qualify for:
  • Alcohol Cellulosic Biofuel Fuels Credit. This credit varies depending on the alcohol proof percentage and the type of alcohol.
  • Alternative Motor Vehicle Credit. This credit is available for certain new vehicles purchased and placed in service for business use during the tax year. There are five components to this credit.
  1. Qualified fuel cell motor vehicle credit;
  2. Advanced lean burn technology motor vehicle credit;
  3. Qualified hybrid motor vehicle credit;
  4. Qualified alternative fuel motor vehicle credit; and
  5. Plug-in conversion credit.
  • Alternative Fuel Vehicle Refueling Property Credit. This credit has been increased to 50 percent of the cost of qualifying property up to $50,000 per location ($200,000 for hydrogen).
  • Disabled Access Credit. This credit amount equals 50 percent of the eligible access expenditures for the tax year between $250 and $10,250, with a maximum credit of $5,000.
  • Employer Provided Child Care Credit. Employers who provide in-house child care for their employees’ children qualify for this credit. The credit cannot exceed $150,000 for the year.
  • Small Employer Pension Plan Start-Up Cost Credit. This 50-percent credit applies to the first $1,000 in administrative expenses over the first three years to set up an employer pension plan and is limited to $500 per year.
  • Tip Credit. This credit is determined based on the federal minimum wage per hour rate. It is equal to 7.65 percent of the tips in excess of the amount needed to make up the minimum wage rate level. If the tip credit is claimed, the related social security taxes cannot be deducted.