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How to Obtain Tax Benefits with the General Business Credit 
 
by kmhagen September 14, 2005

Credits that Make Up the General Business Credit

All of the following are part of the general business credit.  The form that has to be filled out and filed with your income tax return is indicated for each credit.  It may also be necessary to complete Form 3800, General Business Credit, as indicated above.

Biodiesel Fuels Credit - Form 8864

This is a credit expressed as an amount per gallon for biodiesel or agri-biodiesel fuels that are produced, sold or used after December 31, 2004.  Before you claim a credit on Form 8864, you first have to take the qualified biodiesel fuel mixture credit on Form 720, Quarterly Federal Excise Tax Return.

Credit for Alcohol Used as a Fuel - Form 6478

You can take a credit for alcohol in the form of ethanol and methanol you sold or used as a fuel.  You can claim this credit on Form 6478 if you did not claim a credit on Form 720, or on Form 8849 or Form 4136, Credit for Federal Tax Paid on Fuels.

Credit for Contributions to Selected Community Development Corporations - Form 8847

This is a credit of 5% of a contribution made to a qualified community development corporation (CDC) before June 30, 1999.  The credit is figured over a 10-year period, based on the number of years the contribution is available for use by the CDC.  Selected community development corporations were announced by Housing and Urban Development (HUD) in 1994.

Credit for Employee Social Security and Medicare Taxes Paid on Certain Employee Tips - Form 8846

If your business is a food and beverage establishment, you can take this credit which is generally equal to the employer’s part of the payroll taxes on tips paid to your employees.  But you cannot take a credit for social security and Medicare taxes on tips used to meet the federal minimum wage requirements.

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