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.
- Alternative fuel credits: a credit based on the amount of production of certain non-petroleum fuels.
- Disaster relief credits
- 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