Federal Tax Credits Guide 2026
Explore 104 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(9)
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.
Child and Dependent Care Credit
Credit for 20-35% of up to $6,000 in childcare expenses for two or more qualifying dependents.
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 Tax Credit
Tax credit up to $16,810 for qualified adoption expenses including legal fees and court costs.
Child and Dependent Care Credit
Credit for 20-35% of childcare expenses up to $3,000 per child ($6,000 for two or more).
Education Tax Credits(5)
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.
Lifetime Learning Credit
Credit of up to $2,000 per year for qualified tuition and education expenses for post-secondary education and professional development.
American Opportunity Tax Credit
Credit of up to $2,500 per student for qualified education expenses during the first four years of higher education.
American Opportunity Tax Credit
Credit up to $2,500 per student for qualified education expenses in first 4 years of college.
Energy Tax Credits(46)
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.
Alternative Motor Vehicle Credit
Credit for purchasing qualifying fuel cell vehicles, with amounts varying by vehicle weight class.
Residential Battery Storage Credit
30% credit for installing qualifying battery storage technology in your home as part of clean energy.
Energy Efficient Home Improvement Credit
Up to $3,200 annual credit for qualifying home energy improvements like heat pumps, insulation, and windows.
Residential Clean Energy Credit (Solar)
30% tax credit on the cost of solar panels, including installation, with no upper limit through 2032.
Residential Clean Energy Credit
Electric Vehicle Tax Credit (30D)
Up to $7,500 tax credit for purchasing a new qualifying electric vehicle assembled in North America.
Energy Efficient Home Credit
Credit for energy-efficient improvements to your home including insulation, windows, doors, and HVAC systems.
Fuel Cell Vehicle Credit
Credit up to $8,000 for purchasing a qualifying new fuel cell motor vehicle.
Used Clean Vehicle Credit
Credit up to $4,000 for purchasing a qualifying used clean vehicle from a dealer.
Sustainable Aviation Fuel Credit
Credit of $1.25-$1.75 per gallon for sustainable aviation fuel with at least 50% emissions reduction.
Biodiesel Mixture Credit
Credit of $1.00 per gallon for biodiesel blended with petroleum-based diesel fuel.
Credit for Certain Nonbusiness Energy Property
Credit up to $3,200 annually for qualified energy-efficient home improvements.
Zero-Emission Nuclear Power Credit
Credit for existing nuclear power plants producing zero-emission electricity.
Credit for Small Wind Energy Property
30% credit for installing qualifying small wind energy systems on residential or commercial property.
Energy Community Bonus Credit
10% bonus credit for clean energy facilities located in communities historically reliant on fossil fuels.
Qualified Plug-In Electric Drive Vehicle Credit
Up to $7,500 credit for new qualifying plug-in electric vehicles meeting battery sourcing requirements.
Domestic Content Bonus Credit
10% bonus credit for clean energy projects meeting domestic content requirements.
Clean Electricity Investment Credit (48E)
Investment credit for facilities generating electricity from zero-emission sources.
Carbon Capture Credit (45Q)
Credit up to $85 per metric ton of CO2 captured and permanently stored in geological formations.
Investment Credit (Section 48)
Credit for investing in qualifying energy property including solar, geothermal, and fuel cell systems.
Electric Vehicle Charging Infrastructure Credit
Credit up to 30% of costs for installing EV charging equipment, up to $100K per station.
Second Generation Biofuel Credit
Credit of $1.01 per gallon for producing cellulosic biofuel from qualifying non-food feedstocks.
Geothermal Heat Pump Credit
30% credit for installing qualifying geothermal heat pump systems in residential properties.
Previously-Owned Clean Vehicle Credit
Up to $4,000 credit (30% of sale price) for used clean vehicles purchased from dealers.
Biodiesel and Renewable Diesel Credit
Credit of $1.00 per gallon for biodiesel and renewable diesel produced or used as fuel.
Clean Electricity Production Credit (45Y)
Technology-neutral credit for producing electricity from zero-emission sources.
New Clean Vehicle Credit Transfer
Transfer the clean vehicle credit to a registered dealer for an immediate price reduction at purchase.
Low-Income Community Bonus Credit
Bonus credit of 10-20% for solar and wind projects in low-income communities.
Clean Hydrogen Production Credit (45V)
Credit up to $3 per kilogram for clean hydrogen produced with low lifecycle greenhouse gas emissions.
Healthcare Tax Credits(4)
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.
Premium Tax Credit (ACA)
Credit to reduce health insurance premiums purchased through the ACA Health Insurance Marketplace.
Health Coverage Tax Credit (HCTC)
Credit covering 72.5% of health insurance premiums for workers displaced by trade agreements.
Retirement Tax Credits(2)
Saver's Credit (Retirement Savings)
A credit of up to $1,000 ($2,000 married filing jointly) for eligible contributions to retirement accounts like 401(k) or IRA.
Retirement Savings Contributions Credit (Saver's Credit)
Credit of 10-50% of retirement contributions up to $2,000 for low/moderate-income taxpayers.
Business Tax Credits(27)
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.
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.
Research and Development Tax Credit
Credit for qualified research expenses, with startups able to offset up to $500,000 in payroll taxes.
Work Opportunity Tax Credit
Credit up to $9,600 for hiring individuals from targeted groups including veterans and ex-felons.
Commercial Clean Vehicle Credit
Credit up to $40,000 for qualifying commercial clean vehicles used in business.
Mine Rescue Team Training Credit
Credit for training qualified mine rescue team members at underground coal and metal mines.
Credit for Increasing Research Activities
Credit for qualified research expenses including wages, supplies, and contract research.
Qualified Railroad Track Maintenance
50% credit for qualified railroad track maintenance expenditures on short-line railroad tracks.
Orphan Drug Credit
25% credit for clinical testing expenses for drugs treating rare diseases affecting under 200,000 Americans.
Small Business Health Care Credit
Credit up to 50% of employer-paid health insurance premiums for qualifying small businesses.
Advanced Manufacturing Production Credit
Credit for domestic manufacturing of clean energy components including solar cells and battery electrodes.
Disaster Employee Retention Credit
Credit for wages paid to employees during periods when a business is inoperable due to qualifying disasters.
Employee Retention Credit (Historical)
Refundable credit for employers retaining employees during COVID-19 (applicable to 2020-2021 only).
Small Business Research Credit Payroll Offset
Startups can apply up to $500,000 of R&D credit against payroll taxes instead of income taxes.
Railroad Track Maintenance Credit
Credit for 50% of qualified railroad track maintenance expenditures for short-line railroads.
Employer-Provided Childcare Credit
Credit for 25% of costs to build/operate childcare facility plus 10% of childcare resource expenses.
Empowerment Zone Employment Credit
Credit of 20% on the first $15,000 of wages for employees living and working in empowerment zones.
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.