Get to Know the “Unusual” General Business Credit

May 12, 2025

Tax Tip:


Generally, tax credits are more valuable than tax deductions. Unlike a deduction, which reduces a business’s taxable income, a credit reduces its tax liability dollar for dollar. Tax credits aren’t unlimited, however. For businesses, the aggregate value of tax credits may be limited by the general business credit (GBC), found in Internal Revenue Code Section 38.


The GBC isn’t a tax credit in the usual sense. Rather, it’s a collection of dozens of business-related credits scattered throughout the tax code. It consists of more than 30 individual tax credits that provide incentives for various business activities. Each credit must be claimed separately, according to its specific rules and using the relevant tax forms. Taxpayers that claim more than one credit, however, must also file Form 3800 to report the aggregate value of those credits and calculate the overall allowable credit under the GBC.

This material is generic in nature. Before relying on the material in any important matter, users should note date of publication and carefully evaluate its accuracy, currency, completeness, and relevance for their purposes, and should obtain any appropriate professional advice relevant to their particular circumstances.

Share Post:

Are Your Business Expenses Properly Substantiated?

By Katrina Arona • September 23, 2025
Tax Tip: Businesses can generally deduct their “ordinary and necessary” business expenses. But even a legitimate expense isn’t deductible unless it’s adequately substantiated.

A Brief History of Women in Accounting

By Katrina Arona • September 19, 2025
Accounting hasn’t always been an open profession for women. For much of the 19th and early 20th centuries, women were excluded from formal financial roles, limited by both law and bias. Today, barriers are being broken and women are leading the way.

S Corporation Year End Payroll Reporting Considerations - Fringe Benefits

By Katrina Arona • September 17, 2025
As year-end approaches, employers must ensure payroll is accurate for tax reporting. W-2s are due 1/31, so it’s crucial to review compensation and properly report all benefits, including fringe benefits.
Show More