How Do I Find Tax Credits and Incentives My Business Qualifies For?

Work through four layers in order: federal tax credits (each one is claimed on its own IRS form), your state's economic development and revenue agencies, local incentives from your city or county, and finally a tax professional who confirms what applies before you file. Begin with the basic facts about your business: location, industry, number of employees, gross receipts and what you plan to spend or hire. Most programs screen on those facts first.

Last checked: October 24, 2026. This page is general information, not tax, legal, or financial advice.

What do I need to know about my business before I start?

Most eligibility rules turn on a handful of facts: where you operate (state and local programs only apply where you have a location, payroll or property), your industry (many state programs go by NAICS code), your size (employees and gross receipts), and what you're planning, whether that's hiring, equipment, building, a retirement plan, health coverage, paid leave or R&D. Timing matters too. Some programs only work if you apply before you hire or invest.

How do I find federal tax credits?

Begin with the IRS page "Credits and deductions for businesses." The IRS describes a credit as "an amount you subtract from the tax you owe" and a deduction as "an amount you subtract from your income."

Most federal business credits work the same way:

1. Each credit has its own form that you use to figure it, for example Form 6765 for the research credit or Form 8881 for retirement plan startup costs.
2. Form 3800 brings them together. The IRS says to file Form 3800 "to claim any of the general business credits."
3. Unused credit isn't necessarily lost. The Form 3800 instructions say unused general business credits may generally be carried back 1 year and carried forward 20 years.

Which federal credits do small businesses commonly check?

These were current on IRS pages as of October 24, 2026. Each has its own eligibility tests.

• Research credit (Form 6765). For qualified research activities. A qualified small business (gross receipts under $5 million, and no gross receipts before the five-year period ending with the tax year) may elect to apply part of the credit against payroll taxes, using Form 6765 and then Form 8974.
• Small employer pension plan startup credit (Form 8881). For employers with 100 or fewer employees who received at least $5,000 in compensation the prior year. It covers the costs of starting and administering a SEP, SIMPLE IRA or qualified plan such as a 401(k). It's claimable for three years.
• Small business health care tax credit (Form 8941). For employers with fewer than 25 full-time equivalent employees, below-limit average wages and a SHOP Marketplace plan (or a limited exception), who pay at least 50% of employee-only premiums. It's available for two consecutive tax years.
• Disabled access credit (Form 8826). For an eligible small business, meaning one with gross receipts of no more than $1 million or no more than 30 full-time employees in the preceding year, that makes eligible access expenditures.
• FICA tip credit (Form 8846). For food and beverage businesses where tipping is customary, and, starting with tax years after 2024, certain beauty service businesses.
• Employer credit for paid family and medical leave (Form 8994). The IRS says the Working Families Tax Cuts law permanently expanded this credit, including coverage for employees with six months of service and part-time employees who customarily work 20 or more hours a week.
• Employer-provided childcare credit (Form 8882). For qualified childcare facility and resource-and-referral spending.

Some benefits are deductions, not credits, but you should still check them. Section 179 expensing and bonus depreciation for equipment are examples; see our guide to the Section 179 limit for 2026.

Which popular credits have ended or lapsed?

Check end dates before you count on anything. Under current law:

How do I find state incentives?

• The state economic development agency (often called Commerce or Economic Development). It runs the job-creation, investment and training programs. For example, the Oklahoma Department of Commerce runs the Quality Jobs Program, which requires a signed contract before new jobs can count.
• The state revenue or tax agency. It runs state tax credits, sales tax exemptions and franchise or income tax rules.

Many state programs have to be approved before you hire, build or invest, so call the agency early.

How do I find local incentives?

Cities, counties and special districts offer their own incentives, most often property tax abatements negotiated before a project starts. In Texas, for example, the Comptroller describes a Chapter 312 abatement as "a local agreement between a taxpayer and a taxing unit that exempts increases in the value of the property from taxation for up to 10 years." Ask your city or county economic development office what's offered where you are.

Who can help me for free, and when do I need a CPA?

SBA resource partners (Small Business Development Centers, SCORE mentors, Women's Business Centers and Veterans Business Outreach Centers) offer counseling for starting and growing a business. A tax professional is the right person to confirm eligibility, figure the credit and file the forms. The IRS notes that preparers include CPAs, enrolled agents and attorneys, and it offers a Directory of Federal Tax Return Preparers with Credentials and Select Qualifications for checking credentials.

Where does a free match tool fit in?

A matching tool doesn't replace any of these steps. It narrows down where to look first, so you start with a shortlist instead of a blank page. Then confirm each match with the agency that runs the program, or with your tax professional.