What’s the difference between tax credits and a tax deduction? A tax credit lowers your tax bill dollar for dollar. A deduction reduces taxable income, proportionate to your tax bracket.
If you’re in a 25% bracket, a $10,000 deduction lowers your tax bill by $2,500, but a $10,000 credit lowers the bill by the full $10,000, regardless of your tax bracket.
We’ve listed some popular tax credits. Please contact us to learn more and to see if you can advantageously utilize one of these, or other potential tax credit programs.
Click here to watch a quick video about 179D Deductions for Energy Efficient Commercial Buildings. This is a deduction, versus a tax credit.