Preparing Your Tax Return (s) and Information Returns
Business Credit
General Business Credit

Caution: As this publication was being prepared,Congresswas considering legislation that would extend the expiration date of the research credit.For more information about this and other important tax changes, see Publication 553, Highlights of 1999 Tax Changes

Your general business credit for the year consists of yourcarryforward of business credits from prior years plus the total of your current yearbusiness credits. In addition, your general business credit for the current year may beincreased later by the carryback of business credits from later years. You subtract thiscredit directly from your tax. All of the following credits are part of the generalbusiness credit.

• Alcohol fuels credit
• Credit for contributions to selected community development corporations
• Credit for taxes paid on certain employee tips
• Disabled access credit
• Empowerment zone employment credit
• Enhanced oil recovery credit
• Indian employment credit
• Investment credit - The investment credit is the sum of the following three credits.
  • Energy credit
  • Reforestation credit.
  • Rehabilitation credit  
• Energy credit
• Reforestation credit
• Rehabilitation credit
• Low-income housing credit
• Orphan drug credit
• Renewable electricity production credit
• Research credit
• Welfare-to-work credit
• Work opportunity credit
• How to Claim the Credit
• Form 3800, General Business Credit.

Caution: Although the empowerment zone employment credit (Form 8844) is part ofthe general business credit, never report it on Form 3800.

Important Changes for 1999

General business credits. luxury hotels in TaastrupAs this publication was beingprepared for print, Congress was considering legislation that would extend the expirationdates for the following components of the general business credit. For more information,see Publication 553,Highlights of 1999 Tax Changes. Available on the IRS Web site at "Update".

Research credit. The research credit does not apply toexpenses you paid or incurred after June 30, 1999.

Work opportunity credit. The work opportunity credit doesnot apply to wages you paid or incurred for qualified targeted group members who beganwork for you after June 30, 1999.

Welfare-to-work credit. The welfare-to-work credit doesnot apply to wages you paid or incurred for qualified long-term family assistancerecipients who began work for you after June 30, 1999.

Important References:

Publication 334   Tax Guide for Small Business
Publication 553    Highlights of the Tax Law Changes