Ah, everyone’s favorite time of the year: Tax season.

We dread it all year and sigh heavily when it finally comes around. But if you’re a business owner, there are a few things that you can do to get tax credits and tax deductions.

You don’t want to miss these! They could save your business (and yourself) a lot of money! Keep reading to learn more about tax incentives for businesses.

1. General Business Tax Credit

The general business tax credit is one that incentivizes business owners to do certain things like buying an electric vehicle for the business. If you partake in these incentives, you’ll have to fill out an individual form for each activity and submit it for your tax credit.

2. Alternative Fuel Credits

The idea behind the alternative fuel credits is to incentivize American businesses to invest in fuels that are not imported but rather created here. An important note here: These credits only apply to those who are in the business of fuel, not just using it in a car.

3. Set Up Shop in Puerto Rico

The Puerto Rico Tax Haven is a real thing. The only way you can do this legally is if you set up your business in Puerto Rico and are only getting business from local Puerto Ricans or visitors on the island itself.

You could do this if you feel you are only going to make under $9,000, since that is tax-free, or if you are going to make over $61,000 because the highest tax bracket pays 33% instead of 37% like in the U.S.

4. Work Opportunity Credit

If you’re a business and want tax relief, the work opportunity credit is a great way to get tax credits.

If you hire employees that otherwise would have a hard time finding work, the work opportunity applies to you. So who are these employees?

• Ex-felons
• Unemployed veterans
• Long-term family assistance residents
• Summer youth employees

Hiring these employees can potentially get you a tax benefit depending on how much you pay the employees.

5. Employee Retention Credit

Since almost 70 million people quit their job last year in 2021 and many businesses had to let go of employees in 2020, the government responded by incentivizing employers to keep employees.

Businesses can earn a pretty good chunk of money per employee retained in the business per quarter of 2021. These tax credits can be claimed in Form 941.

Use These Tax Incentives for Businesses

As a small business owner or business owner in general, knowing these tax incentives for businesses can make or break tax season for you. You can save so much money knowing these small tax relief incentives and filling out a few extra forms each year.

Does this sound like something you could be doing? Well, get on it! You can start saving this tax season.

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