Federal Tax Credits Guide 2026
Explore 47 federal tax credits with eligibility requirements, maximum amounts, and how to claim each one. Tax credits directly reduce your tax bill dollar-for-dollar.
Family Tax Credits(5)
Child Tax Credit (CTC)
A tax credit of up to $2,000 per qualifying child under age 17 that directly reduces your tax bill.
Child and Dependent Care Credit
Credit for expenses paid for the care of qualifying children or dependents so you can work or look for work.
Adoption Credit
A nonrefundable credit for qualified expenses related to adopting an eligible child.
Earned Income Tax Credit (EITC)
A refundable credit for low-to-moderate income working individuals and families, especially those with children.
Credit for Other Dependents
A $500 nonrefundable credit for dependents who are not eligible for the Child Tax Credit, such as older children or aging parents.
Education Tax Credits(3)
American Opportunity Tax Credit (AOTC)
Up to $2,500 per eligible student for the first four years of higher education, 40% refundable.
Lifetime Learning Credit
Up to $2,000 per tax return for tuition and fees at eligible educational institutions. No limit on the number of years claimed.
Student Loan Interest Deduction
Deduct up to $2,500 of interest paid on qualified student loans, reducing your taxable income.
Energy Tax Credits(17)
Residential Clean Energy Credit
A 30% tax credit for installing solar panels, wind turbines, geothermal heat pumps, and battery storage systems on your home.
Energy Efficient Home Improvement Credit
Credit for energy-efficient improvements including insulation, windows, doors, heat pumps, and water heaters. Up to $3,200 per year.
Clean Vehicle Credit (EV)
Up to $7,500 credit for purchasing a new qualifying plug-in electric or fuel cell vehicle assembled in North America.
Used Clean Vehicle Credit
Up to $4,000 or 30% of the sale price (whichever is less) for purchasing a qualifying used electric vehicle from a dealer.
Alternative Fuel Vehicle Refueling Credit
Credit for installing alternative fuel vehicle refueling property, including electric vehicle charging stations at your home.
Renewable Energy Production Tax Credit (PTC)
A per-kilowatt-hour tax credit for electricity generated from qualified renewable energy resources like wind and solar.
Clean Energy Investment Tax Credit (ITC)
A credit based on the cost of qualifying clean energy property placed in service, including solar, wind, and energy storage.
Carbon Oxide Sequestration Credit (45Q)
A credit for capturing qualified carbon oxide from an industrial facility and permanently storing it or using it in enhanced oil recovery.
Clean Fuel Production Credit
A credit for the production of clean transportation fuels including sustainable aviation fuel and other qualifying fuels.
Clean Hydrogen Production Credit
A credit for the production of qualified clean hydrogen at facilities that meet greenhouse gas emission requirements.
Advanced Manufacturing Production Credit (45X)
A credit for US manufacturers of clean energy components including solar cells, wind turbine blades, inverters, and battery cells.
Clean Electricity Production Credit (45Y)
A technology-neutral credit for facilities generating electricity with zero greenhouse gas emissions, available for facilities placed in service after 2024.
Clean Electricity Investment Tax Credit (48E)
An investment credit for clean electricity generation facilities and energy storage placed in service after 2024.
Energy Efficient Commercial Buildings Deduction (179D)
A deduction for owners of commercial buildings that achieve at least 25% energy savings compared to ASHRAE reference standards.
Energy Efficient New Homes Credit (45L)
A credit for builders of new energy-efficient homes that meet Energy Star or DOE Zero Energy Ready Home program requirements.
Previously Owned Clean Vehicle Credit
A credit for purchasing a previously owned qualifying plug-in electric drive motor vehicle from a licensed dealer.
Qualified Commercial Clean Vehicle Credit (45W)
A credit for businesses purchasing qualifying clean vehicles for commercial use, with no manufacturer sales cap or MSRP limitation.
Healthcare Tax Credits(2)
Premium Tax Credit (PTC)
A refundable credit to help eligible individuals and families afford health insurance purchased through the Health Insurance Marketplace.
Health Coverage Tax Credit
Covers 72.5% of qualified health insurance premiums for eligible trade-displaced workers and PBGC pension recipients.
Retirement Tax Credits(1)
Business Tax Credits(13)
Small Business Health Care Credit
Credit for small businesses that provide health insurance coverage to their employees through the SHOP marketplace.
Work Opportunity Tax Credit (WOTC)
A credit for employers who hire individuals from certain targeted groups who face barriers to employment.
Research & Development Tax Credit
A credit for businesses that invest in research and development activities in the United States.
Disabled Access Credit
A credit for small businesses that incur expenditures to provide access to persons with disabilities.
Employer-Provided Childcare Credit
A credit for employers who provide childcare facilities or contracted childcare services for their employees.
Small Employer Pension Plan Startup Costs Credit
A credit for eligible startup costs of a new qualified retirement plan, SIMPLE IRA, or SEP established by small employers.
General Business Credit
An umbrella credit combining multiple business credits including R&D, WOTC, renewable energy, and more.
New Markets Tax Credit (NMTC)
A credit for investments in Community Development Entities that serve low-income communities and stimulate economic growth.
Rehabilitation Credit
A 20% credit for qualified rehabilitation expenditures on certified historic structures, claimed over 5 years.
Empowerment Zone Employment Credit
A credit for employers who hire employees who both live and work in designated empowerment zones.
Indian Employment Credit
A credit for employers who hire and retain qualified employees who are enrolled members of Indian tribes and work on Indian reservations.
Mine Rescue Team Training Credit
A credit for mining companies that pay or incur expenses for training qualified mine rescue team members.
Railroad Track Maintenance Credit
A credit equal to 50% of qualified railroad track maintenance expenditures paid or incurred by eligible Class II and Class III railroads.
Housing Tax Credits(2)
Mortgage Interest Credit (MCC)
A credit for first-time homebuyers who received a Mortgage Credit Certificate from their state or local government.
Low-Income Housing Tax Credit (LIHTC)
A credit for developers and investors who build or rehabilitate affordable rental housing for low-income households.
International Tax Credits(1)
Specific Situations Tax Credits(3)
Credit for the Elderly or Disabled
A credit for individuals who are 65 or older or retired on permanent and total disability with limited income.
Excess Social Security Tax Credit
A credit for employees who had excess Social Security tax withheld because they worked for multiple employers during the year.
Alternative Minimum Tax (AMT) Credit
A credit that allows taxpayers to recover AMT paid in prior years when the timing differences that caused AMT reverse.
Tax Credits vs. Tax Deductions
Tax credits are more valuable than tax deductions because credits directly reduce your tax bill dollar-for-dollar, while deductions only reduce your taxable income. For example, a $1,000 tax credit saves you $1,000 in taxes, but a $1,000 deduction only saves you $220-$370 depending on your tax bracket.
Some credits are refundable (like the EITC), meaning you can receive a refund even if you owe no tax. Nonrefundable credits can only reduce your tax liability to zero but cannot generate a refund.
For a complete list of tax deductions, visit our Tax Deductions Guide. Use our Income Tax Calculator to see how credits and deductions affect your total tax bill.