Small Business Tax Credits for 2024 / 2025

If you are, utilizing small business tax credits is a smart strategy, as they can significantly
reduce the taxes owed by your business, often offering more savings than tax deductions
because they provide a dollar-for-dollar reduction in your tax liability.

Understanding Small Business Tax Credits

Tax credits are different from tax deductions. While deductions reduce the taxable income, tax credits directly reduce the tax amount owed. Some tax credits are non-refundable (can only reduce the taxes owed to zero), while others are refundable (can result in a tax refund).

Specific Tax Credits For Small Businesses

The federal government and various states offer a range of tax credits to help small
businesses. These incentives are designed to encourage activities like investment in the
company, providing health insurance to employees, hiring and retaining staff, and
making investments in low-income communities.

Small Business Tax Credits for 2024 / 2025

The following tax credits may be available to you:

• Credit For Health Insurance Premiums (Form 8941): Also known as the Small
  Business Health Care Tax Credit, it's worth up to 50% of premiums paid for
  employee health insurance
• Disabled Access Credit (Form 8826): Offers a credit for expenses incurred for
  individuals with disabilities
• General Business Credit (Form 3800): This includes credits like the Work Opportunity Tax Credit, the Disabled Access Credit, and the Research and  Development Tax Credit
• New Markets Credits (Form 8874): Encourages investment in low-income
  communities
• Paid Family And Medical Leave Tax Credits (Form 8994): Offers a credit for
  employers providing paid family and medical leave
• Work Opportunity Tax Credit (WOTC, Form 5884): Offers a credit for hiring
  individuals from certain groups/locations

Get Help with Tax Credits for your Business

The above-mentioned tax credits can provide substantial savings and support various
beneficial activities and investments by the business; however, it is best to talk with a
tax professional to ensure the tax credits listed are available for your location/situation.

To learn more about the potential tax credits for your business, consider reaching out to a payroll tax filing service today. 

Or, contact us today to see how Trivantus is already helping countless companies with their payroll taxes and processing.