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U.S. income tax has numerous nonrefundable business credits. In most cases, any amount of these credits in excess of current year tax may be carried forward to offset future taxes, with limitations. The credits include the following, available to individuals and businesses:
  • Alternative motor vehicle credit: several credits are available for purchase of varying types of non-gasoline powered vehicles.[7]
  • Alternative fuel credits: a credit based on the amount of production of certain non-petroleum fuels.[8]
  • Disaster relief credits[9]
  • Credits for employing individuals in certain areas or those formerly on welfare or in targeted groups
  • Credit for increasing research expenses
  • A variety of industry specific credits
Many sub-Federal jurisdictions (states, counties, cities, etc.) within the U.S. offer income or property tax credits for particular activities or expenditures. Examples include credits similar to the Federal research and employment credits, property tax credits granted by cities (often called abatements) for building facilities within the city, etc. These items often are negotiated between a business and a governmental body, and specific to a particular business and property.