Disabled access credit

A tax credit for an eligible small business that pays or incurs expenses to provide access to persons with disabilities. The expenses must be to enable the eligible small business to comply with the Americans with Disabilities Act of 1990.

8826

Empower- ment zone employ-
ment credit

A tax credit for businesses that hire individuals who both live and work in a federally designated "empowerment zone," such as certain areas of New York City, Chicago, Atlanta, Los Angeles, Philadelphia, and Washington, D.C. (among others).

8844

Renewal community employ-
ment credit

Provides businesses with an incentive to hire individuals who both live and work in a designated renewal community. The credit can be claimed if "qualified wages" are paid or incurred to a "qualified employee." The credit is for wages paid or incurred after 2001. The credit is 15% of the qualified wages paid or incurred during a calendar year. The amount of qualified wages a taxpayer can use to figure the credit cannot be more than $10,000 for each employee for each calendar year. As a result, the credit can be as much as $1,500 (15% of $10,000) per qualified employee each year.

8844

New markets credit

A tax credit for a qualified equity investment in a qualified community development entity made after December 31, 2000. The credit is claimed over a period of up to 7 years. To find the amount of credit each year, multiply the amount paid to the qualified community development entity for the investment by a percentage. The percentage is:

  . The principal place of business for your
     trade or business, or

  . 6% for each of the next 4 years

Thus, the credit totals 39% of your investment over a 7-year period.

8874

Indian employ-
ment credit

Provides businesses with an incentive to hire certain individuals who live on or near an Indian reservation. The business does not have to be in an empowerment zone, enterprise community, or renewal community to qualify for this credit. A business can claim the credit if it paid or incurred "qualified wages" to a "qualified employee."

8845

Work opportun-
ity credit

Provides businesses with an incentive to hire individuals from groups that have a particularly high unemployment rate or other special employment needs. The business does not have to be in an empowerment zone, enterprise community, or renewal community to qualify for this credit. The business can claim the credit if it paid or incurred "qualified first-year wages" to a "targeted group employee." For 2007, the credit is combined with the welfare-to-work credit.

5884

Welfare-
to-work credit

Provides businesses with an incentive to hire long-term family assistance recipients. The business does not have to be in an empowerment zone, enterprise community, or renewal community to qualify for this credit. The business can claim the credit if it paid or incurred "qualified wages" during the first 2 years of employment to a "long-term family assistance recipient." For 2007, the credit is combined with the work opportunity credit.

8861

Low-
income housing credit

This credit can be claimed only for residential rental buildings in low-income housing projects that meet one of the minimum set-aside tests. The low-income housing credit is determined as a percentage of the qualified basis of each new low-income building placed in service after 1986. This credit is taken over a 10-year period. In general, the 10-year credit period starts at the beginning of the tax year in which the building is placed in service.

8586, with a copy of 8609

Small employer pension plan start-up credit

A credit for costs paid or incurred in tax years beginning after December 31, 2001, for retirement plans established after that date. A business may be able to claim a tax credit for part of the ordinary and necessary costs of starting a qualified defined benefit plan, defined contribution plan (including a 401(k) plan), SIMPLE plan, or SEP plan. The credit equals 50% of the cost (up to a maximum of $1,000 per year) to set up and administer the plan and educate employees about the plan, for each of the first 3 years of the plan.

8881

Credit for employer-
provided child care

A credit for an amount (not to exceed $150,000) equal to the sum of 25% of the qualified child-care expenditures and 10% of the qualified child-care resource and referral expenditures of a taxpayer for the taxable year.

8882

Invest-
ment credit

This credit is a combination of other credits, including:

  . Rehabilitation credit for expenses
    incurred in rehabilitating certain older
    buildings. Generally, the percentage of
    costs a taxpayer can take as a credit is
    10% for buildings placed in service before
    1936 and 20% for certified historic
    structures.

  . Energy credit--a 10% (30% in 2006
    through 2008) credit that applies to
    certain costs for solar or geothermal
    energy property placed in service during
    the tax year.

  . Qualifying advanced coal project credit--
    available to taxpayers who have received
    clarification of their project as a qualifying
    project..

3468

Credit for employer-
paid Social Security tax on employee tips

A credit for Social Security and Medicare taxes paid by a food or beverage establishment where tipping is customary for providing food or beverages.

8846

Research expense credit

Designed to encourage research investment, this is an incremental credit equal to the sum of:

  . 20% of the excess of qualified research
    expenditures for the taxable year over a
    base amount, and

  . 20% of any basic research payments

6765

Community development corporation (CDC)
credit

This credit applies to certain contributions made to a selected community development corporation on or before June 30, 1999.

8847

Renewable electricity production credit

A credit available to sellers of electricity from renewable resources and poultry waste. It is based on electricity that was sold to unrelated persons and was produced from qualified energy resources at a qualified facility during the 10-year period after the facility is placed in service.

8835

Alcohol fuels credit

A credit based on selling or using certain types of alcohol as a fuel for transportation.

6478

Biodiesel fuels creditt

A credit based on selling or using as a fuel a mixture of animal fats or vegetable oils with diesel. The credit applies to fuels produced, used, and sold after December 31, 2004, and expires after December 31, 2008.

Generally 8864

Small agri-biodiesel fuel producer credit (an addition to the biodiesel fuels credit)

A credit of 10 cents per gallon for up to 15 million gallons of biodiesel fuel produced by small producers (defined as having the capacity to produce 60 million gallons or less per year). The credit sunsets after December 31, 2008.

Generally 8864

Low sulphur diesel fuels credit

A credit of 5 cents for every gallon of low sulphur diesel fuel produced by a qualified small business, for expenses paid after 2002.

8896

Orphan drug credit

This credit applies to qualified expenses incurred in testing certain drugs for rare diseases and conditions, known as "orphan drugs."

8820

Alternative fuel (clean-fuel) vehicle credit

A combination of four credits: the hybrid vehicle credit, the advanced lean-burn technology vehicle credit, the alternative fuel (clean-fuel) vehicle credit, and the credit for vehicles powered by fuel cells. Different computation methods and effective dates apply. Special apportioning rules also apply.

8910

Clean-
fuel vehicle refueling property credit

A 30 percent credit, up to a maximum of $30,000, for installing clean-fuel vehicle refueling property for use in a trade or business (or up to a maximum of $1,000 if installed at the principal residence of the taxpayer). Effective for property placed in service after December 31, 2005 and before January 1, 2008. Special apportioning rules apply.

8911

Energy-
efficient new home construction credit

A credit of up to $2,000 for homebuilders and manufacturers of new single-family homes that reduce energy usage for heating and cooling by a certain percentage. Subject to several requirements and certification. Applies to homes substantially completed after December 31, 2005, and purchased after December 31, 2005 and before January 1, 2009.

8908

Energy-
efficient home appliance production credit

A credit ranging from $50 to $175 for each appliance to manufacturers of energy-efficient dishwashers, clothes washers, and refrigerators. Taxpayers can claim up to $75 million for all taxable years. Other limits apply. Applies to appliances produced after December 31, 2005 and before January 1, 2008.

8909

Indian coal credit

A credit for coal produced from reserves owned by federally-recognized Indian tribes. The credit is $1.50 per ton for coal sold in 2006 through 2009, and $2.00 per ton sold in 2010 through 2012. These amounts are indexed for inflation.

8835

Fuel cell and micro-turbine power plant credit

A 30 percent credit for installing a qualified fuel cell power plant and a 10 percent credit for purchasing a stationary micro-turbine power plant. Available for property placed in service after December 31, 2005 and before January 1, 2008.

3468

Distilled spirits wholesalers credit

A credit for the average carrying costs of the excise tax on distilled spirits. Available to importers, wholesalers, and distillers. Effective for tax years beginning after September 30, 2005.

8906