What Is a Corporate Tax Credit?

Video Transcript

"My name is Miranda Chook and I'm a CPA and we're talking about corporate tax credits. Well corporate tax credits are deductions to a corporations tax liability. There are many types credits that are available at the federal level, state level and sometimes even more local levels and frequently these credits are actually used to promote social or economic policies. Some of examples of this are for creating jobs. Either certain types of jobs or a certain number of jobs in a certain location. There are also credits for providing low-income housing if you're in the real estate industry for example. There's the research and development credit and there are credits for using while creating certain machinery and equipment, and as I mentioned you may also want to check with the state that you filing as well as sometimes the city and counties that you are in because then you also have some credits that you can take advantage of. So do please check with an experienced financial adviser to see how these are effect your specific circumstance."