Tax Credits (FTC, GBC)

General Business Credit Introduction and Overview

3:55Premium Video

Written byLipai WangFounder · IRS-registered tax professional

Key Takeaways

Form 3800 is an umbrella form combining multiple individual business tax credits
It is NOT a single credit — it coordinates a family of credits
Common credits: R&D, Work Opportunity, Health Insurance, Disabled Access, Energy credits
Each credit has its own qualification rules but all flow through Form 3800
Many business owners miss available credits — review the full list annually

What Is the General Business Credit?

The General Business Credit (GBC) is not a single credit — it is an umbrella framework that bundles together numerous individual business tax credits under Form 3800. Small business owners and entrepreneurs often leave money on the table by not knowing these credits exist.

Form 3800 serves as a container that combines, limits, and coordinates all the individual business credits to ensure they work together properly under IRS rules.

Common Credits Under the GBC Umbrella

Credits that fall under the GBC include the Research & Development (R&D) credit, the Work Opportunity Tax Credit (WOTC), the Small Employer Health Insurance Credit, the Disabled Access Credit, energy-related credits for renewable energy investments, and many others. Each credit has its own qualification rules and calculation, but they all flow through Form 3800.

Frequently Asked Questions

Can startups claim the General Business Credit?

Yes. Many credits under the GBC are available to businesses of all sizes. The R&D credit, for example, has a specific provision for qualified small businesses to apply it against payroll taxes.

Is there a limit on the General Business Credit?

Yes. The total GBC is limited to your net income tax minus the greater of your tentative minimum tax or 25% of your net regular tax liability above $25,000. Unused credits carry back 1 year and forward 20 years.

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