Business Tax Credits You Shouldn't Miss

Running a business is tough—but missing out on valuable tax credits makes it even harder. Tax credits directly reduce your tax bill dollar for dollar, making them far more potent than deductions. Yet, many small business owners overlook these opportunities.

Whether you're a startup, hiring employees, or investing in clean energy, here are key business tax credits you shouldn't miss:

1. Employee Retention Credit (ERC)

If you retained employees during COVID-19 shutdowns or slowdowns, you may still qualify for the Employee Retention Credit—even retroactively. This credit is worth up to $26,000 per employee, depending on the year and eligibility.

Note: ERC claims are still being reviewed and processed. Be cautious of aggressive third-party promoters offering “easy” ERC refunds.

2. Work Opportunity Tax Credit (WOTC)

Hire from specific target groups—such as veterans, long-term unemployed, or SNAP recipients—and you may be eligible for the WOTC. This credit can save your business up to $9,600 per qualified new hire.

3. Research & Development (R&D) Tax Credit

Contrary to popular belief, this isn’t just for scientists in lab coats. If your business improves products, develops software, or enhances processes, you may qualify. Startups can even offset payroll taxes with this credit.

4. Disabled Access Credit

Have you invested in making your business more accessible? You may be eligible for a 50% credit on up to $10,250 in qualifying expenses—capped at $5,000 in total—for enhancements that improve accessibility for people with disabilities.

5. Paid Family and Medical Leave Credit

Did you provide paid leave to employees under a written policy? If so, you may qualify for a credit of up to 25% of the wages paid during leave taken for family or medical reasons.

6. Energy-Efficient Commercial Buildings Deduction (Section 179D)

If your business constructed or renovated a commercial building with energy-saving systems (like HVAC or lighting), you might qualify for this deduction and related credits. This is especially relevant for architects, engineers, and contractors working on government buildings.

7. Clean Vehicle and EV Charging Station Credits

Did you buy a qualified electric vehicle for business use? Install an EV charging station? The Inflation Reduction Act expanded these credits—potentially offering thousands in tax savings.

8. Small Business Health Care Tax Credit

If you offer health insurance through the SHOP Marketplace and meet size and wage thresholds, you may qualify for a credit of up to 50% of the premiums you pay.

Don’t Leave Money on the Table

Business tax credits are complex and subject to frequent changes due to new legislation. Many require timely filings or pre-certifications (like the WOTC). That’s why it’s essential to work with a qualified tax professional who knows the full range of credits available to you.

Need help identifying which credits your business qualifies for? At Andrew Schliesman Tax & Accounting LLC, we specialize in helping business owners maximize their tax savings and stay compliant with ever-changing tax laws. Contact us today to schedule a consultation or request a tax credit review.