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Business Credits: Small-Business Taxes (2025 IRS Guide)

This guide covers “Business Credits” within small-business taxes. The following material presents the IRS treatment of this topic, including the qualifications, exceptions, and examples in the source section. Read the rules alongside the facts of your own situation before deciding what to report, deduct, or document.

Adapted from Publication 334 (2025), Tax Guide for Small Business, published by the Internal Revenue Service. This guide retains the source edition’s years, amounts, deadlines, and examples. It is guidance for that edition, not a statement that the same figures apply to every tax year.

Business Credits

All of the following credits are part of the general business credit. The form you use to figure each credit is shown in parentheses. You will also have to complete Form 3800.

Some credits have expiration dates. Check the instructions for each credit to make sure it is available for 2025.

Alternative fuel vehicle refueling property credit (Form 8911).

This credit applies to the cost of any qualified fuel vehicle refueling property. For more information, see Form 8911.

Expired credits.

The biodiesel credit, renewable diesel credit, and biofuel producer credit, expired for fuel sold or used after December 31, 2024. The sustainable aviation fuel mixtures credit will no longer apply to any sale or use after September 30, 2025. For more information, see Form 8864.

Carbon oxide sequestration credit (Form 8933).

This credit is for carbon oxide that is captured at a qualified facility and disposed of in secure geological storage or used in a qualified enhanced oil or natural gas recovery project. For more information, see Form 8933.

Credit for employer social security and Medicare taxes paid on certain employee tips (Form 8846).

This credit is generally equal to your (employer’s) portion of social security and Medicare taxes paid on tips received by employees of your food and beverage establishment where tipping is customary. The credit applies regardless of whether the food is consumed on or off your business premises. The credit also applies to tips from customers or clients in connection with barbering or hair care, nail care, esthetics, and body spa treatments. For more information, see Form 8846.

Credit for employer differential wage payments (Form 8932).

This credit provides businesses with an incentive to continue to pay wages to an employee performing services on active duty in the uniformed services of the United States for a period of more than 30 days. For more information, see Form 8932.

Credit for employer-provided childcare facilities and services (Form 8882).

This credit applies to the qualified expenses you paid for employee childcare and qualified expenses you paid for childcare resource and referral services. For more information, see Form 8882.

Credit for increasing research activities (Form 6765).

This credit is designed to encourage businesses to increase the amounts they spend on qualified research and experimental activities, including energy research. For more information, see Form 6765 and its instructions.

Credit for small employer health insurance premiums (Form 8941).

This credit applies to the cost of certain health insurance coverage you provide to certain employees. For more information, see Form 8941.

Credit for small employer pension plan startup costs, auto-enrollment, and military spouse participation (Form 8881).

This credit applies to pension plan startup costs of a new qualified defined benefit or defined contribution plan (including a section 401(k) plan), Savings Incentive Match Plan for Employees (SIMPLE) plan, or Simplified Employee Pension (SEP) plan. For more information, see Pub. 560, Retirement Plans for Small Business.

Disabled access credit (Form 8826).

This credit is a nonrefundable tax credit for an eligible small business that pays or incurs expenses to provide access to persons who have disabilities. You must pay or incur the expenses to enable your business to comply with the Americans with Disabilities Act of 1990. For more information, see Form 8826.

Distilled spirits credit (Form 8906).

This credit is available to distillers and importers of distilled spirits and eligible wholesalers of distilled spirits. For more information, see Form 8906.

Employer credit for paid family and medical leave (Form 8994).

This credit applies for wages paid to qualifying employees while they are on family and medical leave, subject to certain conditions. For more information, see Form 8994.

Empowerment zone employment credit (Form 8844).

You may qualify for this credit if you have employees and are engaged in a business in an empowerment zone for which the credit is available. For more information, see Form 8844.

Energy efficient home credit (Form 8908).

The new energy efficient home credit is available for eligible contractors that construct qualified new energy efficient homes sold for use as a residence. For more information, see Form 8908.

Investment credit (Form 3468).

The investment credit is the total of several credits. For more information, see Form 3468.

Low sulfur diesel fuel production credit (Form 8896).

For more information, see Form 8896.

Low-income housing credit (Form 8586).

This credit generally applies to each qualified low-income building. For more information, see Form 8586.

New markets credit (Form 8874).

This credit is for qualified equity investments made in qualified community development entities. For more information, see Form 8874.

Orphan drug credit (Form 8820).

This credit applies to qualified clinical testing expenses paid or incurred for rare diseases or conditions. For more information, see Form 8820.

Clean vehicle credits (Form 8936).

These credits are for certain clean vehicles placed in service during the tax year but must be acquired before October 1, 2025. For more information, see Form 8936 and its instructions.

Qualified railroad track maintenance credit (Form 8900).

This credit applies to qualified railroad track maintenance expenditures paid or incurred during the tax year. For more information, see Form 8900.

Renewable electricity production credit (Form 8835).

This credit is for electricity produced in the United States or U.S. territories from qualified energy resources at a qualified facility. For more information, see Form 8835.

Work opportunity credit (Form 5884).

This credit provides businesses with an incentive to hire individuals from targeted groups that have a particularly high unemployment rate or other special employment needs. For more information, see Form 5884.

Using the guidance

Keep the documents that establish the dates, amounts, and circumstances described above. References to other chapters, forms, worksheets, or earlier and later sections refer to the linked IRS publication. Check the full publication and its updates before relying on a rule for a different tax year or a situation not addressed here.

Sources and further reading

The cited U.S. government text is in the public domain. Source accessed October 28, 2026. Fynoptic has organized this material for educational use and is independent of, and not endorsed by, the IRS.

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