Running a small business comes with many expenses, but tax credits can provide meaningful savings by directly reducing the amount of tax you owe. Unlike deductions, which lower taxable income, credits lower your tax bill dollar for dollar. Here are five valuable tax credits that small business owners should consider:

Work Opportunity Tax Credit (WOTC) - This credit encourages businesses to hire individuals from targeted groups facing employment barriers, such as veterans, ex-felons, or long-term unemployed individuals. Depending on the employee hired, credits can be worth up to $9,600 per worker.

Research and Development (R&D) Tax Credit - Even small businesses may qualify for this credit if they invest in developing new products, improving processes, or enhancing software. The credit can offset income taxes or, for qualified small businesses, payroll taxes—making it especially valuable for startups.

Employer-Provided Childcare Credit - If your business provides childcare facilities or contracts with third-party childcare providers, you may be eligible for a credit of up to 25% of childcare expenses and 10% of childcare resource and referral services. This not only supports employees but also reduces your tax burden.

Disabled Access Credit - Small businesses that make their facilities more accessible to individuals with disabilities—such as installing ramps, widening doorways, or offering adaptive equipment—can receive a credit of up to 50% of eligible expenses.

Small Employer Health Insurance Credit - If you provide health insurance through the Small Business Health Options Program (SHOP) Marketplace, you may qualify for a credit worth up to 50% of premiums paid. This incentive helps businesses offer benefits while lowering costs.

Final Thoughts

Don’t leave money on the table—make sure your business is getting every tax credit it deserves. Contact Pricewise Business Solutions today to review your eligibility and start saving on your next tax bill.