Some business expenses cannot be written off as deductions but instead claimed as tax credits. Tax credits are considered more valuable than a regular deduction as it reduces business income taxes dollar for dollar. Like deductions, tax credits are available only to the extent they are allowed in Congress. Business owners can decide whether to treat certain expenses as deductions or credits in certain situations. Generally, however, business owners can claim tax credits for expenses where there is no tax deduction. Tax credits are mainly used to offset income taxes but can also reduce employment taxes.
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