Business Tax Credits You May Be Missing: WOTC, Disabled Access, Small Employer Health, and Energy Credits

By Yarik Yarosh, CPA ·September 5, 2026 ·7 min read

Written by Yarik Yarosh, CPA (US & Canada) September 5, 2026 · FL CPA license AC61704 · CPA Ontario

Tax credits reduce your tax bill dollar-for-dollar, making them significantly more valuable than deductions. A business in the 37% tax bracket needs $27,027 in deductions to equal the tax savings of a single $10,000 credit. Despite this, many business credits go unclaimed because the qualification rules aren’t widely understood or the paperwork seems daunting. Under IRC 51, the Work Opportunity Tax Credit alone is worth $2,400-$9,600 per eligible hire, and the qualifying groups are broad enough that many new hires qualify without the employer realizing it. The Disabled Access Credit under IRC 44 gives small businesses up to $5,000 per year for making their premises accessible, and the expenses that qualify include website accessibility improvements. Energy credits under the Inflation Reduction Act and OBBBA now cover commercial vehicles, building efficiency improvements, and renewable energy installations. Most of these credits can be carried back 1 year and forward 20 years if the business does not have enough tax liability to use them in the current year.

✓Key takeaway

Major business tax credits:

Credit	IRC Section	Maximum Amount	Who Qualifies
Work Opportunity Tax Credit (WOTC)	IRC 51	$2,400-$9,600 per eligible hire	Any employer hiring from targeted groups
R&D Tax Credit	IRC 41	20% of qualified research expenses (regular) or 14% (ASC)	Businesses with qualifying R&D activities
Disabled Access Credit	IRC 44	50% of eligible expenses between $250-$10,250 (max $5,000)	Small businesses (under $1M revenue or 30 employees)
Small Employer Health Insurance Credit	IRC 45R	50% of premiums paid (35% for tax-exempt)	Small employers with under 25 FTE employees, average wages under ~$60,000
Employer-Provided Child Care Credit	IRC 45F	25% of facility costs + 10% of resource/referral costs (max $150,000)	Employers providing child care facilities
Family and Medical Leave Credit	IRC 45S	12.5-25% of wages paid during FMLA leave	Employers with a written leave policy paying at least 50% of wages during leave
New Markets Tax Credit	IRC 45D	39% of qualified equity investment over 7 years	Investments in qualified community development entities
Energy Investment Tax Credit (ITC)	IRC 48	30% of cost (base) or up to 50% with adders	Solar, wind, geothermal, energy storage installations
Commercial Clean Vehicle Credit	IRC 30D/45W	Up to $7,500 (light vehicles) or $40,000 (heavy vehicles)	Businesses purchasing qualifying electric/fuel cell vehicles
IRC 179D Energy Efficient Building Deduction	IRC 179D	Up to $5.65/sq ft (2025)	Commercial building owners making energy efficiency improvements

General business credit carryover rules:

Rule	Details
Carryback	1 year
Carryforward	20 years
Limitation	Can’t reduce tax below tentative minimum tax
Order	Credits used in order earned (oldest first)

Which business tax credits could you be claiming?

Hypothetical example

Round numbers. A small business with $500,000 in taxable income, 15 employees, and a physical retail location examines available credits.

1. Work Opportunity Tax Credit (WOTC): The business hired 5 new employees in 2025:

Employee	Targeted Group	First-Year Wages	Hours Worked	Credit
Employee A	Long-term unemployed (27+ weeks)	$30,000	2,000+	$2,400 (40% x $6,000 max wages)
Employee B	Veteran (unemployed 6+ months)	$35,000	2,000+	$5,600 (40% x $14,000 max wages)
Employee C	SNAP recipient (18-39)	$28,000	2,000+	$2,400
Employee D	Ex-felon (hired within 1 year of conviction/release)	$25,000	2,000+	$2,400
Employee E	Not from a targeted group	$32,000	2,000+	$0
Total WOTC				$12,800

WOTC requirements:

File Form 8850 (Pre-Screening Notice) on or before the employee’s start date
Submit to State Workforce Agency within 28 days of start date
Employee must work at least 120 hours (25% credit) or 400 hours (40% credit)

Targeted Group	Maximum Qualifying Wages	Credit Rate	Maximum Credit
TANF recipients	$10,000 (Year 1) + $10,000 (Year 2)	40% / 50%	$9,000
Veterans (disabled, unemployed 6+ months)	$24,000	40%	$9,600
Veterans (unemployed 6+ months)	$14,000	40%	$5,600
Long-term unemployed (27+ weeks)	$6,000	40%	$2,400
SNAP recipients (18-39)	$6,000	40%	$2,400
Ex-felons	$6,000	40%	$2,400
SSI recipients	$6,000	40%	$2,400
Summer youth (16-17, from empowerment zones)	$3,000	40%	$1,200
Vocational rehabilitation referrals	$6,000	40%	$2,400
Designated community residents (18-39)	$6,000	40%	$2,400

2. Disabled Access Credit (IRC 44): The business makes ADA accessibility improvements:

Improvement	Cost
Install wheelchair ramp	$3,000
Modify restroom for wheelchair access	$4,000
Update website for screen reader compatibility	$2,000
Install automatic door opener	$1,250
Total eligible expenses	$10,250

Calculation	Amount
Eligible expenses	$10,250
Minus first $250 (not covered)	($250)
Net eligible	$10,000
Credit (50%)	$5,000

Qualification: business must have $1 million or less in revenue OR 30 or fewer full-time employees. Any expenses above $10,250 are deductible under IRC 190 (up to $15,000).

3. Small Employer Health Insurance Credit (IRC 45R): (If the business has fewer than 25 FTE employees with average wages under ~$60,000)

Requirement	Business Details
FTE employees	15
Average annual wages	$35,000
Employer pays at least 50% of premiums	Yes
Purchased through SHOP marketplace	Yes
Annual premiums paid by employer	$60,000

Credit calculation	Amount
Premiums paid	$60,000
Credit rate (up to 50%)	Phased down based on FTEs and wages
Estimated credit (with 15 FTEs, $35K avg wages)	~$15,000

The credit is available for only 2 consecutive years.

4. Commercial Clean Vehicle Credit (IRC 45W): The business purchases an electric delivery van:

Vehicle	Details
Electric delivery van	$55,000 purchase price
GVWR	8,500 lbs (over 6,000 lbs)
Battery capacity	75 kWh
Credit	Lesser of 15% of basis or $40,000 for vehicles over 14,000 lbs GVWR; 30% or $7,500 for lighter vehicles
Credit amount	$7,500 (30% x $55,000 = $16,500, capped at $7,500 for vehicles under 14,000 lbs)

5. Energy Investment Tax Credit (IRC 48, if installing solar): The business installs a solar panel system on the building:

Item	Amount
Solar installation cost	$80,000
Base credit (30%)	$24,000
Domestic content adder (10%)	$8,000 (if using US-made panels)
Energy community adder (10%)	$8,000 (if in qualifying energy community)
Maximum credit	$40,000

Total credits available to this business:

Credit	Amount
WOTC (5 hires)	$12,800
Disabled Access Credit	$5,000
Small Employer Health Insurance Credit	~$15,000
Commercial Clean Vehicle Credit	$7,500
Solar ITC (if installed)	$24,000-40,000
Total credits	$64,300-$80,300

Tax impact	Amount
Tax liability on $500,000 income (21% C-Corp)	$105,000
Total credits	($64,300)
Net tax after credits	$40,700
Effective tax rate	8.1%

Illustrative numbers only, not a real client and not advice for your facts.

How does the small business health care tax credit work?

The small business health care tax credit under IRC 45R provides up to 50% of employer-paid premiums (35% for tax-exempt employers) for businesses that cover at least 50% of employee-only premium costs. To qualify, you must have fewer than 25 full-time equivalent employees with average annual wages below $58,000 (2025, indexed), and you must purchase coverage through the SHOP marketplace. The credit is calculated on a sliding scale, with the maximum credit available only to employers with 10 or fewer FTEs and average wages of $29,000 or less. You can claim this credit for only two consecutive tax years, so timing the credit to coincide with your highest premium costs maximizes its value. The credit is claimed on Form 8941 and reduces your tax liability directly.

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Cite this page

Yarik Yarosh, CPA. "Business Tax Credits You May Be Missing: WOTC, Disabled Access, Small Employer Health, and Energy Credits." Blue Cloud CPA, September 5, 2026. https://bluecloudcpa.com/guides/small-business-business-tax-credits-wotc-disabled-access-energy

This guide is general information, not tax advice for your specific situation. Which points apply, and how, depends on your facts.

Business Tax Credits You May Be Missing: WOTC, Disabled Access, Small Employer Health, and Energy Credits

Which business tax credits could you be claiming?

How does the small business health care tax credit work?

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