This credit can be claimed if employer had paid or incurred such expenses on certain employees’ tips.

Qualified electric vehicle is any motor vehicle that is manufactured primarily for use on public streets, roads and highways and has at least four wheels: powered primarily by an electric motor drawing current from rechargeable batteries, fuel cells or other portable sources of electrical current; originally used by you and acquired for your own use and not for resale.

The credit for each qualified electric vehicle is

• 10% of the vehicle’s cost reduced by any section 179 deductions, up to a maximum credit of $4000, for each qualified electric vehicle placed in service before 206.
• 2.5% of the vehicle’s cost reduced by any section 179 deduction, up to maximum credit of $1000, for each qualified electric vehicle placed in service in 2006.
  
  

Small businesses benefit from Section 179 deductions

If property for business has a useful life of more than one year, the cost must be spread across several tax years as depreciation with a portion of the cost deducted each year.
But there is a way to immediately receive these income tax benefits in one tax year. The provisions of Internal Revenue Code Section 179 allow a sole proprietor, partnership or corporation to fully expense tangible property in the year it is purchased.
And tax-law changes have made this option much more appealing by dramatically increasing the amount that can be written off immediately. The inflation-adjusted amount for 2004 taxes is $102,000.

Eligible property
Property that may be written off in the tax year of purchase, rather than depreciated over the asset's useful life, includes:
Furniture and fixtures

• Single-purpose agricultural or horticultural structures
• Machinery and equipment
• Most storage facilities

Also, the definition of eligible section 179 property was expanded by the 2003 legislative changes to include off-the-shelf computer software. Previously, it had to be written off over three years.

The IRS says ineligible property includes:

• Income-producing property (investment or rental property)
• Property held by an estate or trust
• Property used in a passive activity
• Property purchased from related parties
• Property used outside of the United States
• Buildings and their structural components
• Property acquired by gift or inheritance

The credit is available every year and can be used for a variety of costs such as:-

• Sign language interpreters for employees or customers who have hearing impairments.
• Readers for employees or customers who have visual impairments.
• The purchase of adaptive equipment or the modification of equipment
• The production of print materials in alternate formats (e.g. Braille, audio tape, large print)
• The removal of barriers, in buildings and transportation, which prevent a business from being accessible to, or usable by, individuals with disabilities.

Expenditures paid or incurred by the eligible small business to comply with applicable requirements under the Americans with Disabilities Act of 1990 as in effect on November 5, 1990
The tax credit does not apply to the costs of new construction, and a building being modified must have been placed in service before November 5, 1990.

Eligible small business means any business or person that had gross receipts for the preceding tax year that did not exceed $ 1 million or had no more than 30 full time employees during the preceding tax year and elects to claim the disabled access credit for the tax year.

This credit is 50 % of qualified clinical testing expenses paid or incurred during the tax year.

• Amounts paid or incurred to acquire, construct, rehabilitate or expand property that is to be used as part of a qualified childcare facility of taxpayer, is depreciate property, and is not part of the principal residence of the taxpayer or any employee of the taxpayer.
• For the operating expenses of a qualified childcare facility of the taxpayer, including expenses for training of employees, scholarship programs, providing compensation for higher levels of child care training.
• Under a contract with a qualified child care facility to provide child care services to the employee of the taxpayer.

The credit is 25% of qualified expenses you paid for employee childcare. This credit limit each year is $150,000.

Qualified child care resources and referral expenditures are amounts paid or incurred under a contract to provide child care resource and referral services to employees of the taxpayer.
The credit is 10% of qualified expenses you paid for childcare resource and referral services. This credit is limited to $150,000 each year.

This credit applies to pension plan startup costs. If you begin a new qualified defined benefit or defined contribution plan including a 401k plan, SIMPLE plan, or simplified employee pension you can receive a tax credit of 50% of the first $1000 of qualified startup costs. This credit is limited to $500 per year for the first credit year and each of the following 2 tax year.
For more information refer publication 560.

Wages you paid or incurred for work performed during the 1 year period beginning on the date the certified individual begins work for you. The qualified wages that may be taken into account for any employee is limited to $6,000 ($ 3,000 for a qualified summer youth employee)

The credit is 25% of qualified wages, if worked for you at least 120 hours but fewer than 400 hours and 40 % of qualified wages, if worked for you at least 400 hours.

The qualified wages for any employee is zero if:

*   The employee did not work for you for at least 120 hours.
*   The employee worked for you previously.
*   The employee is your dependent.
*   The employee is related to you.
*   50% or less of the wages the employee received from you were for working in your trade or business.
*   You use any of the employee’s wages to figure the welfare to work credit for the current year.

Expenditure made for any qualified rehabilitated building. The credit is 10 % of the expenditures for any qualified rehabilitation building other than a certified historic structure and 20 % of the expenditures for a certified historic structure.

For any qualified timber property that was acquired during the tax year prior to October 23, 2005. You can’t claim for more than $10,000(or $5,000 if married filing separately) of amortizable basis acquired during the tax year.

If the cooperative cannot use any of the credit, the unused credit must be allocated to the patrons of the cooperative.