Capitalizing on Tax Credits

Reduce your Tax Liability by using Federal and State Tax Credits

Capitalize on tax credits by reducing your tax liability. From capitalizing on research and development tax credits to investment credits, to utilizing state and local government incentives to find good employees. For more information review the following:

STATE Business Tax Credits

Manufacturing Exemption

A new law beginning on July 1, 2014 allows manufacturers to obtain a partial exemption on sales and use tax on certain manufacturing and research and development equipment purchases.
Learn more about the Manufacturing Exemption

New Employment Credit

The New Employment Credit is available for business located in newly identified census tracts, as well as the former Enterprise and LAMBRA Zones.
Learn more about the New Employment Credit

California Research Credit

The California Research Credit is available to taxpayers engaged in qualified research activities in California.
Learn more about the California Research Credit

Sales Tax Exemption

The Board of Equalization administers a partial exemption to businesses that purchase qualified property after July 1, 2014.
Learn more about the Sales Tax Exemption

California Competes Tax Credit

The Governor's Office of Business and Economic Development (GO-Biz) administers the California Competes Tax Credit. It is an income tax credit available to businesses that want to come to California, or stay and grow in California.
Learn more about claiming the credit on your tax return

Repeal of the Geographically Targeted Economic Development Areas Tax (G-TEDA) Incentives

AB 93 repealed and made changes to all of the Geographically Targeted Economic Development Area (G-TEDA) Tax Incentives.
Learn more about G-TEDA

FEDERAL Business Tax Credits

Your general business tax credit for the year consists of your carrying forward of business credits from prior years plus the total of your current year business credits. In addition, your general business credit for the current year may be increased later by carrying back business credits from later years. You subtract this credit directly from your tax.

All of the following credits, with the exception of the electric vehicle credit, are part of the general business credit. The form you use to figure each credit is shown below.