What types of tax credits are available in my state?
State and local governments offer a raft of state or locality specific tax credits aimed at both qualifying individuals and small and medium businesses. These business tax credits often form part of special incentive programs designed to attract taxpayers to reside, work, or start enterprises in the state or locality.
State tax credits generally fall into similar categories as those offered by the Federal goverment. For example, most states offer a variety of child and dependent care credits, along with education, home, and energy related credits.
Some income tax state credits, however, are industry specific and are not matched on the federal level. Film production credits, which form a core part of both the California and New York budgets, and as late as 2010 were offered by no less than 40 States, are a good example of such industry specific credits.
To learn more about which income tax credits are available in your State, please visit your State’s department of revenue website.