The following is Information regarding some of the business credits available for 2009.

Small Employer Pension Plan Startup Cost Credit: For 2009, certain small business employers that did not have a pension plan for the preceding three years may claim a nonrefundable income tax credit for expenses of establishing and administering a new retirement plan for employees. The credit applies to 50% of the first $1,000 in qualified administrative and retirement-education expenses for each of the first three plan years.

Employer-Provided Child Care Credit: For 2009, employers may claim a credit of up to $150,000 for supporting employee child care or child care resource and referral services. The credit is allowed for a percentage of “qualified child care expenditures” including for property to be used as part of a qualified child care facility, for operating costs of a qualified child care facility and for resource and referral expenditures.

Differential Wage Credit: If your business is an “eligible small business,” as an employer you may take a credit against your income tax liability for a taxable year in an amount equal to 20% of the sum of the eligible differential wage payments for each of your qualified employees for the taxable year. The credit is for wages paid to a military person called to active duty to keep them at their current salary when they receive military pay.

Work Opportunity Credit: The work opportunity credit is an incentive provided to employers who hire individuals in groups whose members historically have had difficulty obtaining employment. Unemployed veterans and disconnected youth hired after 2008 qualify as a targeted group in addition to the existing targeted groups. This gives your business an expanded opportunity to employ new workers and be eligible for a tax credit against the wages paid.

For more information on credits available for businesses, please contact one of our tax professionals.