Avoid Missing These Valuable Tax Credits in 2026

With tax law updates rolling out at both the federal and state levels, 2026 will bring important opportunities
for businesses to reduce their tax liability—if they know which credits to look for. Many companies leave
thousands of dollars unclaimed each year simply because they are unaware of the incentives available to them.
Our firm prepared this guide to help you understand the key 2026 business tax credits you should not miss, how
they work, and how to position your company to take full advantage.

Whether you operate a small local business or a multi-state enterprise, carefully reviewing your eligibility
for available tax credits can significantly increase your cash flow, reduce year-end tax burdens, and support
long-term growth. Below are the primary credits and incentives our team expects to be most valuable for
businesses in 2026.

1. Research & Development (R&D) Tax Credit

One of the most overlooked credits, the R&D Tax Credit rewards businesses that invest in improving
products, processes, technology, or software—regardless of industry. Many companies assume they do not qualify,
but the requirements are broader than most business owners realize.

• Product development or enhancement
• Designing or testing prototypes
• Improving manufacturing processes
• Developing internal-use software or business technology
• Experimentation to reduce cost, waste, or production time

In 2026, renewed guidance around the amortization of R&D expenses may increase eligibility and improve the
credit’s financial benefit. If your business performs any technical or process-improvement work, a credit study
may uncover significant savings.

2. Work Opportunity Tax Credit (WOTC)

The WOTC remains one of the most financially meaningful hiring incentives for employers. The credit offers up to
$2,400–$9,600 per eligible hire and applies to employees from certain targeted groups, such as:

• Veterans
• Individuals receiving SNAP benefits
• Long-term unemployed workers
• Vocational rehabilitation referrals
• Ex-felons

Because the WOTC has strict pre-screening and filing deadlines, many businesses unintentionally miss out. For
2026, we strongly recommend integrating WOTC screening directly into your onboarding process to ensure
compliance and maximize credit opportunities.

3. Energy Efficiency & Clean Energy Credits

Federal incentives introduced under the Inflation Reduction Act continue into 2026, offering generous credits
for businesses that invest in energy-efficient upgrades. These credits may apply to:

• Commercial building energy improvements
• Solar panel installation
• Geothermal systems
• Energy-efficient HVAC, lighting, and building retrofits
• Fleet electrification and charging infrastructure

Many of these credits now offer direct-pay or transferability options, which allow businesses to monetize the
benefit even without a large tax liability—making them especially attractive going into 2026.

4. Employee Retention Tax Benefits (Remaining Opportunities)

While the original Employee Retention Credit (ERC) program has sunset, businesses still have the opportunity to
claim credits retroactively through amended payroll filings if they qualified but did not previously submit.
With the 2026 deadlines approaching for certain quarters, businesses should review:

• Revenue declines compared to pre-2020 levels
• Operational impacts due to government restrictions
• Recovery startup eligibility for late-stage quarters

If you have not yet explored ERC eligibility, 2026 may be your final chance to secure these significant refunds.

5. Disabled Access Credit & Barrier Removal Deduction

Businesses that made or plan to make accessibility improvements in 2026 should review two valuable incentives:

• Disabled Access Credit — for small businesses that incur expenses to comply with ADA requirements.
• Barrier Removal Deduction — for businesses removing physical barriers that limit access.

These incentives are particularly important for businesses upgrading entrances, bathrooms, counters, or digital
accessibility features like websites and online forms.

6. Employer-Provided Childcare Credit

With workforce shortages continuing into 2026, the Employer-Provided Childcare Credit offers an overlooked
opportunity to attract and retain employees. This credit may apply to:

• On-site childcare facilities
• Partnerships with local childcare providers
• Employee childcare financial assistance programs

The credit can be worth up to $150,000 per year, depending on the level of employer investment.

7. State-Level Tax Credits

In addition to federal incentives, many states are expanding or revising their tax credit programs for 2026.
These may include:

• Job creation and hiring incentives
• Manufacturing and equipment investment credits
• Rural business development credits
• Green energy production and facility development incentives
• Historic rehabilitation credits

Because eligibility varies significantly by state, we recommend reviewing your filing jurisdiction with a tax
professional to determine what incentives your business may qualify for.

8. Don’t Overlook Industry-Specific Credits

Many industries benefit from specialized incentives that business owners often miss. Examples include:

• Manufacturing: equipment modernization credits, apprenticeship credits
• Construction: energy-efficient building credits, workforce development incentives
• Tech & software: R&D credits, cybersecurity investments
• Healthcare: rural practitioner incentives, telehealth expansion credits
• Hospitality: disaster-zone credits, accessibility improvement incentives

If your industry has specialized regulatory requirements, there is a strong chance that a tax incentive exists
to offset those costs in 2026.

Preparing for 2026: How to Maximize Your Tax Credit Strategy

To ensure you don’t leave valuable credits unclaimed, consider the following steps:

• Schedule a pre-year tax planning review.
• Document all capital expenditures and major projects.
• Track hiring activity and employee onboarding data.
• Review your state’s 2026 tax guidance for new incentives.
• Work with a tax professional to identify opportunities early.

Tax credits are one of the most powerful tools for reducing your 2026 tax obligation—but only if you plan ahead
and file correctly.

Our Firm Can Help You Capture Every Available Credit

Maximizing your eligibility requires detailed documentation, strategic planning, and a clear understanding of
current tax law. Our team works directly with business owners to identify, calculate, and support tax credit
claims across federal and state programs.

If you would like a personalized 2026 tax credit review, our firm is here to help you uncover every opportunity
available to your business.

approved by Kacy L. Allen