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Common Tax Credits

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American Opportunity Tax Credit (AOTC)

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A partially refundable tax credit for undergraduate college education expenses.

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Lifetime Learning Credit (LLC)

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A non-refundable tax credit for qualified tuition and related expenses paid for eligible students enrolled in an eligible educational institution.

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Renewable Electricity Production Tax Credit (PTC)

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A per-kilowatt-hour tax credit for generating electricity from qualified renewable sources, such as wind or biomass.

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Adoption Tax Credit

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A non-refundable tax credit for qualified adoption expenses paid to adopt an eligible child.

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Saver's Credit

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A non-refundable tax credit for eligible contributions to employer-sponsored retirement plans or individual retirement arrangements (IRAs).

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Child and Dependent Care Credit

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A non-refundable tax credit for incurred expenses related to the care of children under 13 or disabled dependents while working or looking for work.

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Adoption Credit

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A tax credit like the Adoption Tax Credit, specifically for the costs associated with the legal adoption of a child.

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Low-Income Housing Tax Credit (LIHTC)

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A credit for developers of affordable housing in low-income communities.

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Health Coverage Tax Credit

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A refundable tax credit that pays a significant portion of qualified health insurance premiums for eligible individuals and their families.

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Mortgage Interest Credit

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A tax credit for certain homeowners who receive a Mortgage Credit Certificate (MCC) from their state or local government.

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Historic Preservation Tax Credit

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A credit to encourage the preservation and rehabilitation of historic and old buildings.

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Foreign Tax Credit

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A non-refundable tax credit that reduces the double tax burden for taxpayers earning income outside the United States.

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Residential Energy Efficient Property Credit

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A tax credit for homeowners who install qualifying energy-saving improvements to their home, such as solar, wind, or geothermal energy systems.

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Electric Vehicle Tax Credit

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A credit for taxpayers who purchase a new qualifying electric vehicle, also known as the plug-in electric drive motor vehicle credit.

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Work Opportunity Tax Credit (WOTC)

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A credit available to employers for hiring individuals from certain target groups who have consistently faced significant barriers to employment.

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Education Credits

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General term for tax credits that reduce education costs, such as the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC).

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Earned Income Tax Credit (EITC)

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A refundable tax credit for low- to moderate-income working individuals and couples, particularly those with children.

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Energy Investment Tax Credit (ITC)

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A tax credit for certain energy-efficient investments, including solar, wind, and geothermal systems.

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Child Tax Credit (CTC)

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A non-refundable credit that provides financial relief to taxpayers for each qualifying dependent child.

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New Markets Tax Credit

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A credit given to investors for qualified equity investments in designated Community Development Entities (CDEs), aimed at revitalizing low-income communities.

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