Tax Credits

The government gives tax credit to some businesses as an incentive, which can be deducted directly from tax that they have to pay. There are two main types of tax credit including Investment Tax Credit and Business Tax Credit.

Energy Credits

Energy credits or Business Energy Investment Tax Credit (ITC) are tax credits that are given to specified sectors in the energy industry to incentivize the investment. These sectors include Solar, Small Wind Turbines, Geothermal Systems, Microturbines, and Combined Heat and Power (CHP). Please read: Business Energy Investment Tax Credit (ITC), provided by the U.S. Department of Energy.

Some of other business activities that can be eligible for tax credit are:

• Enhanced Oil Recovery: for more information, please follow
  • Department of Energy, Enhanced Oil Recovery
  • IPAA, Enhanced Oil Recovery
  • Legal Information Institute, Enhanced Oil Recovery
• Research and Experimentation Credit: for more information, please follow
  • Department of Treasury, Investing in U.S. Competitiveness
  • IRS, Research Credit
  • InfoBrief, The U.S. Research and Experimentation Tax Credit in the 1990s
• Bio Diesel Fuels Credit: for more information, please follow
  • Department of Energy, Alternative Fuels Data Center
  • IRS, Biodiesel and Alternative Fuels; Claims for 2014; Excise Tax
  • IRS, 2020 Form 8864