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Source：Feast Information Network Editor：Entertainment Time：2025-06-27 06:18:55

Tax season is pussy licking movies and videosno walk in the park — and that’s especially so for small business owners and solopreneurs. Even if you’re already properly managing your quarterly taxesand have all of your ducks in a row, this time of year means facing your business financials head-on and making any revisions needed to keep your business books going in the right direction.

Thankfully for small business owners, there are a handful of really good tax credits that you can take advantage of for the 2024 tax year. The following tax credits range from employee retention to healthcare credits, all of which are designed to give small business owners a leg up come tax season.

What is the difference between a tax deduction and a tax credit?

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The main difference between a tax deduction and a tax credit is that a tax deduction applies to your business income, which can potentially put you into a lower tax bracket and lessen the amount of taxable income you’ll report to the IRS. A tax credit is simpler — it reduces the dollar amount of taxes that you owe. This means that you’ll save dollar-for-dollar on the tax credits that apply to your small business.

Here are the best 2024 tax credits for small business owners:

Disabled Access Tax Credit

The Disabled Access Tax Credit covers 50% of expenses incurred (up to $10,250) from making your small business more accessible to those living with disabilities. The credit can also be used for hiring interpreters, making alternative materials available to individuals with visual impairments, and more.

Empowerment Zone Employment Credit

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The Empowerment Zone Employment Credit allows businesses in empowerment zones or distressed areas that hire and retain employees in said area to claim up to $3000 per employee. The credit doesn’t limit the number of employees and can be renewed annually.

Qualified Plug-in Electric and Electric Vehicle Tax Credit

If you purchased a plug-in electric vehicle such as an electric car or electric scooter for your small business after the 2010 tax year, your small business might be eligible for this tax credit. The credit total is between $2,500 and $7,500 depending on the size of your EV’s battery.

R&D Tax Credit

Businesses of all sizes that are innovating a process or product and can prove that they’re doing so through quantifiable research are eligible for the R&D Tax Credit. This might include software development, design, product enhancements, and other relevant innovations.

SECURE 2.0 Act

The SECURE 2.0 Act affords tax credits to small businesses that implement a 401(k) plan for employees or that add an auto-enrollment feature to an existing employer retirement plan.

Small Business Health Care Tax Credit

The Small Business Health Care Tax Credit was created to help small businesses put in place health insurance programs for their employees. The tax credit covers 50% of premiums paid and is available for small business owners for up to two consecutive taxable years. Keep in mind that to qualify for this tax credit, a small business must also have fewer than 25 full-time employees and pay average wages below the annual inflation-adjusted limit.

Work Opportunity Tax Credit

The Work Opportunity Tax Credit was first announced in 2021 but has since been extended to the end of 2025 by the Consolidated Appropriations Act. This tax credit applies to small businesses that hire those who otherwise face difficulties finding employment, such as ex-felons, SNAP recipients, and certain veterans. Small business owners can receive up to $2400 for every new hire that meets the appropriate specifications.

Topics Tax Season with Mashable

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